HK Stock Market Move | CG Services (06098) rose by more than 7% in the morning. CICC said that the stage-wise release of risks related to equity is certain to have some uncertainty.

CG SERVICES (06098) rose more than 7% in the morning, up 7.12% as of the time of publication, at 7.22 Hong Kong dollars, with a trading volume of 147 million Hong Kong dollars. On the news front, on May 6, CG SERVICES announced that it would provide a loan of 1 billion yuan to shareholders Bisheng and FortuneWarrior, with a term of five years and an annual interest rate of 5%. The two shareholder companies are wholly owned by the Yang family, with a total stake of 16.26% in CG SERVICES. Bisheng also holds a 51.94% stake in COUNTRY GARDEN, and the loan will be directed to COUNTRY GARDEN Group for use in building-related matters. CICC pointed out that there are uncertainties in the phased release of equity-related risks. The 16.26% stake involved in this plan is all the shares of CG SERVICES directly held by the Yang family. The remaining 20.18% of the major shareholder's equity is held by the Guoqiang Public Welfare Foundation, whose shares were announced by the Yang family to be donated in July 2023 for charitable purposes. The bank believes that the company will continue to fulfill its original commitment to investors and adjust its return plan dynamically according to the progress of various matters of the group.