Greentown China Holdings Ltd (3900.HK) saw its stock price surge 5.27% during Tuesday's intraday trading session, following the announcement of a new project management services contract. The significant uptick in share value suggests investors are optimistic about the company's growth prospects and potential revenue boost from this new agreement.
According to a company statement released late Monday, Greentown Real Estate Construction Management, a subsidiary of Greentown China, has agreed to provide project management services to Chongqing CCCC Jingshuang. The deal is expected to generate considerable revenue for the company, with the final consideration anticipated not to exceed RMB80.7 million (approximately USD 11.5 million).
This new contract underscores Greentown China's strategy to expand its project management business, diversifying its revenue streams beyond traditional property development. The positive market reaction indicates that investors view this move as a step in the right direction for the company, especially in the context of China's evolving real estate market. As Greentown China continues to leverage its expertise in project management, it may be better positioned to navigate the challenges facing the broader property sector in China.
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