China Index to Separate from Fang, Focus on Commercial Property

The ADSs of China Index in the amount of $32,037 are expected to be traded publicly today on the Nasdaq.

Author: Belinda Zhou   

China Index Holdings Ltd. is ready to spin off into a separate entity from its parent, Fang Holdings Ltd. (NYSE: SFUN)  and launch the trading of its 59.5 million American depositary shares on the Nasdaq Stock Market under the symbol "CIH" Tuesday afternoon.

Shares in Fang were trading up 3 percent, at $1.18 apiece, intraday after the announcement.

China Index's 72.5 million American depositary shares will be distributed in the form of a dividend to Fang shareholders at 5 p.m. on May 28. Each shareholder will receive one share of China Index for every five Fang ADSs in the distribution. The ADSs of the Beijing-based company in the amount of $32,037 would be traded publicly. The distribution will be made in book-entry form, according to the company's regulatory filings.

The chief executive officer of Fang, Tianquan Mo's Class A ordinary shares that are not represented by ADSs will be re-designated as Class B ordinary shares, while the Class B ordinary shares was reported to be 23,636,706.

China Index has been profitable for the three consecutive years since 2016. Last year, its revenue reached $61 million, up 32 percent year-over-year, while income was at $24 million, up 29 percent from 2017.

China Index generates revenue from its information and analytics services. as well as marketplace services. Citing research by Frost & Sullivan, it said, as of Dec. 31, it ran the largest real estate information and analytics service platform in terms of geographical coverage and data volume, covering over 2,300 cities, 850,000 plots of land, 350,000 residential property projects and 45,000 commercial property projects in China.  

On January 21, Fang first announced its intention to separate China Index. On May 2, 2019, Fang's board of directors approved the plan.

Looking ahead, China Index said it will focus more on the market opportunity within China's commercial property sector through its commercial property online marketing portals and mobile applications after the separation and distribution.