Top Biz News
Xujiahui gamble pays off for Yu
By Zhou Yan (China Daily)
Updated: 2009-10-27 08:38
For a writer as renowned as Yu Qiuyu, not only knowledge could be earning him a fortune.
His holdings in Xujiahui Commercial Center Co, a Shanghai-based retailer which is approved to list on the Shenzhen bourse, is estimated to add at least over 60 million yuan ($8.79 million) to Yu's pocket once the firm goes public.
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 Yu Qiuyu |
The State-owned retailer, which operates Huijin Department Store, Shanghai No 6 Department Store, and Huilian Department Store, plans to issue at least 70 million shares on the new second board for geographical expansion to Hongqiao Commercial Zone and equity acquisitions.
The issue price of the firm's shares is estimated to reach around 12.95 yuan apiece and that would make Yu's shares worth nearly 67 million yuan at book value.
Yu's secretary Jin Kelin declined to comment on the issue when reached by China Daily.
A writers' rich list released by a local media showed Yu's fortune, which mainly consisted of copyright royalty income, rocketed to 14 million yuan in 2004 to top all domestic authors. But his wealth shrank to 2.65 million yuan in 2008 in another rich ranking, due to hot competition from young writers.
"Benefiting from its ideal location, convenient transportation, and amid its aggressive expansion to the emerging Hongqiao Commercial Zone, Xujiahui Commercial is likely to have sustainable revenue growth after listing," said Qi Xiaozhai, director of Shanghai Commercial Economic Research Center.
Indeed, apart from Yu, there are several stars in the culture and entertainment sector who could see their wealth ballooning as the second board, ChiNext, steams ahead. ChiNext was launched last Friday and trading will begin on Oct 30.
Director Feng Xiaogang, who holds 2.88 million shares of Huayi Brothers Co, for instance, will see his shares' market value reach 82.1 million yuan from an initial 1.51 million yuan once Huayi debuts on the new board this Friday.
