China home prices have fallen far from their heights as the real estate slump continues (Getty Images)
In today’s roundup of regional news headlines, China’s property crisis drags on as new home prices fall for a 14th month in a row, Beijing-based developer Sunac huddles with creditors to discuss an onshore debt restructuring, and Guangzhou builder Agile announces plans to raise fresh capital.
China Home Prices Fell Most in 7 Years Before Sector Rescue
China’s home prices fell the most in seven years in October, underscoring the depths of the downturn that prompted policymakers to bail out the sector.
New home prices in 70 cities, excluding state-subsidised housing, fell 0.37 percent last month from September, a 14th straight decline, National Bureau of Statistics figures showed Wednesday. The existing home market fared worse, down 0.47 percent, the steepest decline since 2014. Read more>>
Sunac Seeks to Restructure Its $2B in Onshore Bonds
Major developer Sunac China is in talks with creditors to restructure all of its RMB 14.6 billion ($2.07 billion) in onshore bonds, according to three sources with knowledge of the matter.
The bond restructuring will include both corporate bonds and asset-backed securities, the sources said, although no concrete proposals have yet been put forward. Read more>>
Agile Eyes $100M From Top-Up Placement
Chinese developer shares tumbled after Agile Group Holdings became the second real estate company in as many days to announce capital raising plans.
Agile said it will sell stock at an 18 percent discount to raise HK$783 million ($100 million) via a top-up placement. Country Garden Holdings on Tuesday said it would raise HK$3.9 billion, also with an 18 percent discount. Read more>>
Longfor, Midea Plan to Raise $4.9B in Debt
Chinese developers Longfor Group Holdings and Midea Real Estate Holding plan to raise a total of RMB 35 billion ($4.9 billion) in debt, according to China’s National Association of Financial Market Institutional Investors.
NAFMII, which has semi-official status under the auspices of China’s central bank, said Longfor had completed the registration for RMB 20 billion worth of debt, while it had accepted an application by Midea to raise RMB 15 billion. Read more>>
Mainland Developers Slump After Share Sales Announced
Chinese developer shares tumbled after Agile Group Holdings became the second real estate company in as many days to announce capital raising plans. Agile said it will sell stock at an 18 percent discount to raise HK$783 million ($100 million) via a top-up placement. Country Garden Holdings on Tuesday said it will raise HK$3.9 billion, also with a 18% discount.
A Bloomberg Intelligence equities gauge of Chinese builders slumped as much as 8.9 percent on Wednesday, with Agile falling 25 percent. Developers are capitalising on an earlier rally in their shares after authorities took steps to ease a credit crunch in the industry and speculation grew that the country will relax its COVID policies. Read more>>
China Banks Face $210B in Losses From Property Crisis, UBS Says
China’s property slump is estimated to cost the nation’s banking system as much as RMB 1.5 trillion ($210 billion) in losses on loans, bonds and other assets, according to UBS Group.
Such a loss will be “digestible by the banking system as the banks have strong earnings power and high” reserves against non-performing assets, May Yan, the bank’s head of Greater China financials equity research, said in a report. “As such, we don’t expect any banking system crisis at this point.” Read more>>
Thomas Cook Hits Back at Rumours of Fosun Selling Stake
Thomas Cook has pushed back against reports that its Chinese owner, Fosun Tourism Group, is looking to sell its stake in the company.
“Fosun Tourism Group has no plans to sell Thomas Cook,” a Thomas Cook representative told City A.M. Sources told Sky News’ Mark Kleinman that the Chinese company was contemplating either raising capital from external investors or selling the business directly. Read more>>
Indian Singer Shael Oswal Sells Sentosa Villa at a Loss
Indian singer and businessman Shael Oswal is selling his seafronting bungalow in Singapore’s Sentosa Cove for S$32 million ($23.4 million), or S$2,009 per square foot on land area of about 15,930 square feet (1,480 square metres).
The amount is S$7 million or 18 percent lower than the S$39 million he paid for the property, which is along Cove Drive, in 2012. Oswal bought the villa from surgeon Susan Lim and her husband, Deepak Sharma. Read more>>
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