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China HGS Real Estate (HGSH) Signs Agreements for Large-Scale Shanty Areas Rebuilding Projects

August 11, 2014 8:25 AM EDT

China HGS Real Estate Inc. (NASDAQ: HGSH) ("China HGS" or the "Company"), a leading regional real estate developer headquartered in Hanzhong City, Shaanxi Province, China, today announced that the Company was in process of signing two project agreements with local government to rebuild large-scale shanty areas located in Hanzhong City. The total investment in these two projects is estimated to exceed USD1.3 billion.

Reforming shanty areas is an important public welfare project for the Chinese government to improve housing conditions and people's livelihoods. It can also promote the people-oriented new urbanization drive and the integration of urban and rural areas, and improve the quality of urbanization and facilitate sustained and healthy economic development. China's Ministry of Housing and Urban-Rural Development urges plans to complete construction of 4.7 million units of government subsidized houses and aims to complete the renovation by the end of 2014 in accordance with a new circular [2014]-36 (the "Circular") from General Office of the State Council of the People's Republic of China published on August 4, 2014. In the Circular, the State Council also indicated that the government will optimize investment agendas to allocate more funds for shantytown reforms and encourage financial institutions to strengthen loan support for such projects.

"We are excited by the local government's shanty area rebuilding plan," commented Mr. Xiaojun Zhu, Chief Executive Officer of China HGS Real Estate, Inc. "We will actively participate in the Shantytown reforming projects and provide a better living environment for the local residences. We remain focused on providing quality housing with affordable pricing for growing new urban residents in these regions," concluded Mr. Xiaojun Zhu, Chief Executive Officer of China HGS Real Estate, Inc.



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