Hong Kong developer's mainland projects may surpass those on island

This undated file photo shows pedestrians walking past an entrance of a construction site of New World Development's SkyCity mall in Hong Kong. - Bloomberg

HONG KONG (Reuters): New World Development said its land investment in the Chinese mainland may exceed that in the Hong Kong Special Administrative Region in the near future, as a new mainland policy gives it an edge over indebted peers in the hunt for premium land in the Greater Bay Area.

The new policy, dubbed “the three red lines”, aims to tackle unbridled borrowing in the mainland’s real estate sector, capping debt-to-cash, debt-to-assets and debt-to-equity ratios, effectively limiting debt-driven growth strategies.