Joy City Real Estate, a central state-owned enterprise under COFCO Group, has received shareholder approval to delist from the Hong Kong Stock Exchange after 12 years of public trading. The privatization, valued at approximately HK$29.32 billion, addresses chronic issues including low stock liquidity, limited financing capacity, and complex corporate governance under its A-share controlled red-chip structure. Parent company COFCO Group will increase its stake in Joy City Real Estate to over 96%, potentially boosting consolidated profits and streamlining operations amid three consecutive years of losses totaling over RMB 70 billion. This move represents a broader trend among Chinese real estate firms opting for privatization to navigate industry downturns and regulatory burdens. The delisting process gained formal traction with the November 17, 2025 court meeting, where plan shareholders voted overwhelmingly in favor of the resolution. Under the agreement, Joy City Real Estate will repurchase shares via a scheme of arrangement, leading to voluntary withdrawal of its listing status effective November 27, 2025. The company operates as COFCO Group’s primary commercial real estate arm with a portfolio spanning China’s major urban clusters, including 32 commercial projects such as iconic Joy City malls and mixed-use developments. Despite this extensive footprint, the company has struggled to translate assets into sustainable profits, reporting a net loss of approximately RMB 29.77 billion in 2024, compounding losses from previous years. The privatization stems from multiple factors including dismal stock performance, with average daily volumes often below HK$10 million and price-to-book ratios languishing below 0.5 times. The move also simplifies corporate governance by eliminating the need to comply with both Hong Kong and mainland regulations, reducing legal and auditing costs. Industry experts note this delisting is part of a wider privatization wave sweeping Chinese real estate, with over 10 Hong Kong-listed developers having delisted or announced plans since 2023.
Joy City Real Estate Delists from HKEx After 12 Years: Analyzing the $2.9B Privatization and Its Impact on Chinese Property Markets
