Evergrande’s Chen Fen appeared in court after a hot pot party got too spicy
In today’s roundup of regional news headlines, China Evergrande’s share and bond prices tumble as a court freezes a bank deposit held by the indebted developer, while a senior executive of the group appears in a Hong Kong court to answer rape charges.
Evergrande Securities Slump as China Bank Deposit Frozen
China Evergrande Group’s shares and dollar bonds slumped after a court ordered the freezing of a bank deposit held by its onshore division, raising concern over the company’s ability to repay debts.
The stock tumbled almost 7 percent Monday in Hong Kong trading, while Evergrande’s dollar bond due in 2025 fell 2.3 US cents on the dollar to 62.7 cents, set for its biggest drop in nearly two weeks, Bloomberg-compiled prices showed. Read more>>
Evergrande Executive Appears in Hong Kong Court on Rape Charge
A senior executive of real estate giant China Evergrande has appeared in court charged with attempting to rape a woman in a case linked to a hotpot dinner that was attended by three senior Hong Kong officials and violated COVID-19 rules.
Chen Fen is accused of trying to assault the woman at her Happy Valley flat on 2 March. He stood before Eastern Court on Monday when lawyers asked for a preliminary inquiry to be held to examine the strength of the prosecution case ahead of its transfer to the High Court. Read more>>
PropertyGuru Near $1.8B Merger SPAC Backed by Richard Li, Peter Thiel
Singapore-based real estate portal PropertyGuru is nearing a deal to go public through a merger with Bridgetown 2 Holdings Ltd, the blank-cheque company backed by billionaires Richard Li and Peter Thiel, according to people with knowledge of the matter.
A transaction could value the combined entity at about $1.8 billion, the people said, asking not to be identified discussing private matters. The deal will also include a private investment in public entity, or PIPE, of $100 million to $150 million, anchored by institutional investors including Australia’s REA Group Ltd, the people said. Read more>>
China to Order Developers to Disclose Commercial Paper Debt Monthly
Chinese regulators want property developers to disclose details of rapidly growing commercial paper issuance in their monthly reports, said three sources, as part of Beijing’s move to rein in ballooning debt in the property sector as the economy slows.
Real estate developers in the world’s second-largest economy are major issuers in the commercial paper market, which saw new issues worth RMB 3.6 trillion ($556 billion) in 2020, up 20 percent from 2019. Read more>>
China Marketing Controlling Stake in Revamped Anbang
Two Chinese state investors plan to sell a combined 98.78 percent of their stakes in Dajia Insurance Group, the revamped entity of embattled Anbang Insurance Group, for RMB 33.6 billion ($5.2 billion), according to an auction filing last Friday.
China Insurance Security Fund Co, the state-controlled rescue fund for the insurance sector, aims to auction all of its 98.23 percent stake in Dajia for RMB 33.38 billion. Read more>>
China Says Next Hong Kong Leader Must Tackle Housing Crisis
China said Hong Kong’s future leader needs to tackle the city’s housing crisis, in the latest sign that the Asian financial hub’s expensive residential real estate market is a priority for Beijing as Chinese officials seek to reassert their legitimacy after unrest.
With a national security law ensuring stability and prosperity in the city, Hong Kong’s housing problems should be “greatly improved” by 2049, Xia Baolong, director of the cabinet-level Hong Kong and Macau Affairs Office in Beijing, told a private gathering of the territory’s senior-most officials on Friday. Read more>>
China’s Luxury Retirement Homes Draw Millions From Investors
Retiree William Tang recently decided to swap his life in downtown Shanghai for a luxury elder-care development in the city’s far west, paying $220,000 to rent a two-bedroom apartment for 15 years.
“It is more like a resort,” Tang said after viewing the Ardor Gardens showroom, which highlights amenities including an indoor swimming pool, yoga rooms, wine tastings and round-the-clock care. Read more>>
India’s Web Werks Signs MoU for $100M Bengaluru Data Centre
Web Werks plans to build a INR 750 crore ($100 million) data centre in Bengaluru, India. The regional data centre provider signed a memorandum of understanding with the local government of Karnataka, which will help ease the planning permission and regulatory approval process.
Set to be operational by 2023, the 125,000 square foot (11,600 square metre) facility will have a power capacity of up to 20 megawatts — although it will launch with less. Read more>>
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