China New City Group enters JV with CITIC Capital

China New City Group Limited has announced a cooperation memorandum with CITIC Capital Holdings Limited to establish a joint venture (JV) focused on investing in qualifying investment projects within the People's Republic of China. The JV, operating through a JV Company in Hong Kong and a wholly-owned WFOE Company in the PRC, will target distressed assets characterized by discounted pricing, potential for value enhancement, and alignment with urban renewal policies. The shareholding structure dictates that the JV Company will be 50% owned by a Hong Kong subsidiary of China New City Group and 50% by a Hong Kong subsidiary of CITIC Capital. The companies expect this strategic move to diversify China New City Group's business portfolio and to capture new growth opportunities in the current real estate market.