Two property management stocks have staged a dramatic rally, drawing significant market attention. Fangyuan Life Services Group (HK: 09978), resuming trading on July 28, closed up 291.3% at HK$0.85, with a market cap of HK$340 million. During the session, it briefly surged over 322%, topping the Hong Kong stock market's daily gainers list. Meanwhile, Pujiang China (HK: 01417), trading at HK$6.45 with a market cap of HK$2.612 billion, has seen its shares skyrocket from below HK$1—a level often associated with penny stocks—to a high of HK$7.12 since mid-May, marking a peak gain of over 3,000%.
Notably, both companies have recently disclosed equity transfer agreements involving the sale of controlling stakes at a discount. In May, Pujiang China announced that its controlling shareholder planned to sell its entire 74.08% stake. In July, Fangyuan Life Services revealed that its actual controller would sell over half of the controlling shares at a nearly 40% discount. These two surging stocks in the Hong Kong property sector both have equity transfer announcements at their core.
In July, Fangyuan Life Services announced the sale of a 50.01% controlling stake to Gong Weili, a buyer with a background in cloud services. The transaction price per share was only HK$0.14, a 39.13% discount compared to the closing price of HK$0.23 before the trading halt. As part of the deal, Pacific Alliance Group, the matchmaker, received free warrants, gaining a zero-cost option to participate in the arrangement. In the secondary market, Fangyuan Life Services shares hit a high of HK$1.55 on July 31, achieving a peak gain of approximately 570% from the low of HK$0.23 in early July. As of the latest close, the gain has moderated to 274%.
Fundamentally, Fangyuan Life Services faces significant operational pressure. According to its financial reports, revenue has declined for three consecutive years, dropping from 427 million yuan in 2023 to 369 million yuan in 2024, and further to 351 million yuan in 2025. The company has also reported losses for three straight years, with losses attributable to shareholders amounting to 60.61 million yuan, 76.93 million yuan, and 52.48 million yuan for 2023, 2024, and 2025, respectively.
The rally in Pujiang China has been even more dramatic. According to data from Tongdaxin, since the uptrend began on May 14, the stock surged from a low of HK$0.24 to a session high of HK$7.12. This represents a peak gain of about 3,100% in just over two months (calculated from the low of HK$0.215 in early May), setting a new record for the most significant gain in the property sector this year. The trigger for this surge was also a major equity clearing transaction. In May, Pujiang China disclosed that the founding team planned to sell its entire 74.08% stake. A formal closing announcement in June confirmed that Sun Taoyong, founder of Wei Meng, along with concert parties, completed the acquisition to become the new actual controller. The discount in this deal was even steeper, with an offer price of only HK$0.519 per share, a 72.25% discount from the last trading day's closing price of HK$1.870 before the announcement.
Pujiang China's fundamentals do not offer strong support. Its core business is focused on urban services and property management support, with a relatively single business model. According to its financial reports, its main revenue comes from property management and urban sanitation services. By the end of 2025, property management services contributed about 746 million yuan, or 69.23% of revenue, while urban sanitation services brought in 278 million yuan, or 25.82%. Financially, Pujiang China reported losses attributable to shareholders of 74.46 million yuan, 50.34 million yuan, and 24.96 million yuan for 2023, 2024, and 2025, respectively, accumulating nearly 150 million yuan in losses over three years.
Regarding the considerations for the discounted equity transfers, pricing basis, protection of minority shareholders, and future business transformation plans, the journalist sent interview requests to the official emails of both Fangyuan Life Services and Pujiang China, but received no response by the time of publication. Song Ziqian, a senior researcher at Zhongwu Think Tank, explained via WeChat on August 4, "The recent surge in these two loss-making property stocks is not driven by fundamental improvements in the companies. Instead, it is a capital market play triggered by tech entrepreneurs acquiring Hong Kong-listed property platforms at low prices." In his view, such buyers are not interested in the loss-making main business of these property firms but rather in the scarce Hong Kong listing qualifications, mature physical business scenarios, and the option for future capital operations and industrial restructuring. He noted that only two such transactions have occurred so far, representing individual cases rather than a trend of tech firms systematically entering the property sector to acquire shells.
The standout performance of these two property stocks stands out against a backdrop of significant industry changes. According to data from the China Index Academy, the total market value and price-to-earnings ratio of the property sector have been in a declining trend. As of June 30, 2026, the total market cap of listed property companies was approximately 202.99 billion yuan, with an average PE ratio of 13.06 times (excluding outliers), down 21.38% and 27.31% respectively from the beginning of the year. The academy noted that amid the ongoing weakness in valuations and market caps, the divergence among individual stocks has become extreme. The top ten companies now control nearly 80% of the total market cap, while over half of listed property firms are trapped in a cycle of low stock prices and low liquidity, increasing delisting risks. The valuation logic for the property management sector in the capital market has been reshaped, with the previous "scale is everything" approach losing favor. Capital is no longer solely chasing expansion speed; instead, refined operations and customer service capabilities have become core valuation anchors, with high-quality service providers commanding valuation premiums.
The cooling of the capital market is evident in the fact that there were no new IPO applications or listings in the domestic property service industry in the first half of 2026. According to an incomplete count by the journalist, since 2021, five listed property companies—including KWG LIVING, Huafa Property Services, Rongxin Services, Jinke Services, and Ruisen Life Services—have exited the capital market. Acquiring existing Hong Kong-listed platforms and bypassing the strict IPO review process has become a shortcut for new economy companies, tech firms, and traditional transformation enterprises to quickly access the capital market. For instance, Pujiang China's controlling stake was acquired by Sun Taoyong from Wei Meng, a cross-sector move, while Fangyuan Life Services sold its controlling stake to Gong Weili, a tech player with a background in cloud services. Both are examples of tech entities acquiring Hong Kong-listed property platforms at low prices. Song Ziqian also pointed out that there are few mature cases in the public market where a loss-making property stock is immediately acquired, injected with tech assets, and fully transformed. For example, in 2024, the receiver of Jiayuan Services sold its 73.56% stake for 99 million yuan, partially paid through debt offset. After the new control was established, the company first released financial results to resolve the trading halt issue, resumed trading in December 2024, and later conducted a share placement in 2026. This case reflects a typical cycle of "gaining control—restoring governance—resuming listing functions—raising new funds."
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