Greenland Holdings, parent of main Atlantic Yards/Pacific Park developer, sees stock price hit new low. That could make company wary of spending.

Less than two months ago, on 8/4/22, I noted that the plunging stock price for Shanghai-based Greenland Holdings Group (aka Greenland Holding Group), the parent of the main Atlantic Yards/Pacific Park developer, Greenland USA.

That meant the 2019 advice to sell Greenland short was wise. As I wrote, from my search, it was 6.17 renminbi (aka yuan) as of 8/23/19, down from 7.25 a month earlier. It reached 7.24 in July 2020, but has since plunged.

Two months ago, it closed at 3.02, down from 3.78 two months earlier. Today, it's at 2.73, a tick over the new low (2.72) set for the past year. Both rising interest rates and a 14-year low for the yuan against the dollar make borrowing more difficult, and Greenland already has significant debts.

So those likely influence a company to be more conservative, not more liberal, on spending for projects like Atlantic Yards/Pacific Park with a payoff many years away.

Five-year trend. Screenshot via Google Finance.

One-day trend, via Google Finance.

Greenland USA has said it has enough money to build the long-delayed platform crucial to building over the Vanderbilt Yard and getting closer to completing the project.

After all, the joint venture Greenland Forest City Partners recently sold two "100% affordable" buildings, 535 Carlton Ave. and 38 Sixth Ave.

Those buildings were built with a 70% ownership share by Greenland USA and 30% by original developer Forest City Ratner/Forcest City New York, since acquired by Brookfield. The latter owns 5% of Greenland Forest City Partners going forward.

That said, if Greenland USA's parent is scrounging for money, and faces higher borrowing costs, the subsidiary should face continue questions about its financing.