Suzhou New District Hi-Tech Industrial (SHA:600736) will undertake a 1.3-billion-yuan debt-to-equity swap for its subsidiary, Changzhou Xinjunjie Real Estate.
The move aims to improve the subsidiary's capital structure, reduce its asset-liability ratio, and bolster risk resistance, according to a Friday filing with the Shanghai bourse.
The company's wholly-owned unit, Xincheng, will inject 780 million and partner Changzhou Road King will inject 520 million yuan, increasing Changzhou Xinjunjie Real Estate's registered capital to 1.32 billion yuan.
Shares of the property developer were down 1% Friday.
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