Monday, December 20, 2021

Chinese Property Stocks Tumble; China Backs Deals: Evergrande Update

Two from Bloomberg via Yahoo Finance. First up, the headline story:

Mon., December 20, 2021, 2:22 a.m

Chinese property stocks tumbled close to a new five-year low after a series of asset sales underscored concern that equity investors will bear the brunt of losses as developers offload projects to repay debt.

Shimao Group Holdings Ltd. agreed to sell stakes in a Hong Kong development at a loss while Sunac China Holdings Ltd. unloaded assets in Shanghai as developers seek to raise cash. China regulators meanwhile signaled they will support “quality” real estate firms looking to buy assets from struggling rivals, according to a report.

An index of Chinese developers fell for the sixth day in seven, led by Sunac, which posted a record one-day decline of 18%. Trading in Chinese dollar bonds remained light during the seasonal end-of-year lull, according to credit traders.

The rout in developer shares means the richest bosses behind China’s real estate firms have lost more than $46 billion combined this year, according to the Bloomberg Billionaires Index. Evergrande founder Hui Ka Yan’s wealth alone has plunged by $17.2 billion.

Key Developments:

  • China Regulators Encourage Property Project Acquisitions: Report

  • Evergrande Boss Leads $46 Billion Wealth Loss in Worst Year Yet

  • China Regulators in Talks With Shimao, Trusts on Loan Extension

  • Moody’s Downgrades Greenland Holding Group

  • Sunac’s Further Asset Disposals May Boost Cash: Credit React

  • Fitch Forecasts Chinese House Sales Dropping 10%-15% in 2022

  • Shimao’s H.K. Disposal at a Loss May Imply Liquidity Woes: React

China Offshore Bond Defaults Hit Record in December (4:10 p.m. HK)

December is poised to be a record month for Chinese offshore corporate defaults after missed payments by indebted companies including China Evergrande and Kaisa Group Holdings Ltd.

Chinese firms have defaulted on a record $3.8 billion in offshore bonds so far this month, data compiled by Bloomberg show. The previous monthly high was in January when Chinese borrowers failed to repay $2.7 billion of such notes.

China Regulators Encourage Property Acquisitions (2:15 p.m. HK)....


December 19, 2021, 9:45 p.m
Kaisa Shares Plunge in First Trading Since Default Declared