<article><a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Evergrande+Real+Estate+Group">Evergrande Real Estate Group</a> said it had agreed to buy a stake in Shenzhen-listed property firm Calxon Group for 3.6 billion yuan ($553.8 million), a move that could pave the way for a backdoor listing on the mainland.</article>

<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Evergrande+Real+Estate+Group">Evergrande Real Estate Group</a> said it had agreed to buy a stake in Shenzhen-listed property firm Calxon Group for 3.6 billion yuan ($553.8 million), a move that could pave the way for a backdoor listing on the mainland.
Hong Kong-listed Chinese developers are increasingly eyeing onshore listings as domestic funding costs fall. Mainland-listed firms also command higher valuations than those in Hong Kong, helped by a large pool of retail investors.
China&#8216;s second-largest property developer by sales has agreed to buy 52.78 percent of state-owned Calxon Group for 3.79 yuan per share in a deal to be settled through internal resources, Evergrande said in a statement to the Hong Kong stock exchange on Sunday.
&#8220;Many companies would want to go back to the A-share market now because liquidity and valuation in Hong Kong are not as good,&#8221; said Nomura analyst Jeffrey Gao.
Evergrande declined to comment on the possibility of a listing in Shenzhen.
An index tracking dual-listed companies shows mainland listings trade at an average 34 percent premium to the same company listed in Hong Kong.
Shares of Evergrande jumped 4 percent by midday, outperforming a 0.6 percent decline in the broader market .
The stock has however lost 13.3 percent so far this year, compared with a 2.6 percent loss in the Hang Seng Index.
In March, Evergrande reported a 9 percent fall in 2015 core profit, which excludes revaluation gains, but beat analyst estimates with the help of record home sales.
Evergrande&#8216;s stake purchase followed a delisting proposal by Dalian Wanda Commercial Properties announced late last month.
<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Dalian+Wanda+Group">Dalian Wanda Group</a>, owned by China&#8216;s richest man Wang Jianlin, is taking its Hong Kong-listed arm private just 15 months after its stock market debut.
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<h4 style="text-align: justify;">Reuters</h4>

Evergrande Real Estate Group said it had agreed to buy a stake in Shenzhen-listed property firm Calxon Group for $553.8 million

Evergrande agrees to buy stake in China developer Calxon for $553.8m

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Evergrande agrees to buy stake in China developer Calxon for $553.8m

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