12/2/2023 0 Comments China property developer default![]() We have been working on a number of these and expect to continue to do so this year," Jini Lee, a Hong Kong-based partner of international law firm, Ashurst, told FA. "Although there is a general improvement in sentiment with the relaxation of Covid-19 measures in China, we expect the property sector to remain challenged as a number of issuers continue to pursue restructuring and refinancing options. He opined that only once the shakeout process – which will necessitate many defaults – is complete, will there be a sufficient list of companies for investors to consider participating alongside. ![]() “We think the risk appetite for US dollar bonds issued by Chinese property developers has not yet recovered… Recovery in offshore bond issuance – if any – will depend largely on the recovery of property presales (in China) this year,” she explained.Īndrew Collier, managing director of Orient Capital Research, a Hong Kong financial research firm, agreed: “China’s property industry is in a structural decline so there has to be a significant shakeout within the industry.” In 2022, just $1.05 billion of issuance in offshore US dollar bonds from Chinese property developers, compared to $39 billion in 2021, Chen said. But it is worth noting that the firm is focussed is on the management of retail premises rather than property construction and development, Iris Chen, a Nomura credit analyst, told FinanceAsia. Last month, HKEX-listed developer, Times China Holdings, announced its default on US dollar senior notes due 20, joining the fate of peers, China Evergrande Group and Kaisa, who suffered back in 2021.Īmong those Chinese property developers active in the sector so far this year, only Dalian Wanda Commercial Management has issued two tranches of offshore US dollar bonds totalling $700 million. The debt woes of private Chinese developers have reverberated across their Hong Kong-listed counterparts in the past two years.
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