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Disneyland moves lift stock prices

By Zhou Yan (China Daily)
Updated: 2008-11-21 10:46

Most of the shares in the Disneyland concept sector rallied to their daily limits yesterday on speculation that work on the long-anticipated Shanghai Disneyland Park will begin after getting approval from the central government.

Related readings:  Economic downturn hits Disney, shares slide  Shanghai Disneyland 'may open by 2012'  Disneyland in Pudong a 'done deal'  Hongkongers say Disneyland funding too much

The municipal government is in discussions with Walt Disney Co on cooperation details, with actual construction dates hinging on "timing" issues, an anonymous source closely involved in the project was quoted by some media as saying.

"The Shanghai Disneyland Park is scheduled for construction in the Huang Lou area, a cross-zone between the outskirts of Chuan Sha and Nan Hui in Shanghai Pudong New District," the source said.

Jielong Group, which owns 20 hectares of industrial land in Chuan Sha area, rose 10.01 percent to 10.11 yuan.

Early reports had said the park would be spread over 1,000 hectares, three times larger than the one in Hong Kong. The 40 billion yuan project was scheduled to open in 2012.

Alannah Hall-Smith, vice-president of the Walt Disney Co (Asia Pacific) Ltd, said he had nothing new to add on the issue. The municipal development and reform commission could not be immediately reached for comment.

The news also lifted property prices in the proposed area. "Property prices in the Chuan Sha area have doubled to 12,000 yuan per sq m from 2006," said Ma Ji, manager at Centaline China Property Research Center.