Chinese real estate billionaire Xiong Xuqiang has purchased a 20% stake in a Chinese publicly traded semiconductor packaging company, the latest in a flurry of moves by property developers to diversify as China faces slower economic growth.
Xiong, who is the chairman of real estate developer Ningbo Yinyi Group, paid 352 million yuan, or $58 million, for Ningbo Pulisaisi Electronics, which in turn holds a 20% stake in Shenzhen-listed Ningbo Kangqiang Electronics today.
Xiong bought the stake through his nearly 100% owned Yingyi Holding, according to an announcement by Ningbo Kangqiang today.
Greater China – including Taiwan, the mainland and Hong Kong—accounted for 55% of the world's consumption of semiconductors in 2012, according to a report by PwC. Notable semiconductor companies with operations in the mainland include Intel, Taiwan Semiconductor Manufacturing and Advanced Semiconductor Engineering. Ningbo Kangqiang's customers Tianshui Huatian Technology and Jiangsu Changjiang Electronics Technology.
Xiong, who ranked No. 1,210 on Forbes 2014 Billionaires List with wealth of $1.4 billion, injected his real estate business into Shenzhen-traded Gansu Languang Science and Technology several years ago and changed the company's name to Yinyi Real Estate. Xiong's holding company also invests in minerals. He founded Yinyi in 1994 after successfully turning around a state-owned canned food factory.
Xiong is the latest real estate billionaire to announce an investment in an different industry recently. Among others, Hui Wing Mau's Shimao and Hui Kai Yan's Evergrande announced bank investments.
– with Maggie Chen
– Follow me on Twitter @rflannerychina
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