Kaisa Said to Put Brakes on Restructuring Talks and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, Reuters reports that defaulted developer Kaisa has delayed talks with creditors on restructuring offshore debt, and a Moody’s affiliate responds to reports of office closures in key Chinese cities.

Kaisa Delays Offshore Debt Revamp Talks on Uncertain Sector Outlook

Kaisa Group has delayed talks with offshore creditors on debt restructuring terms as the executive now leading the negotiations at the Chinese developer prefers to wait for uncertainty in the property sector to ebb, four sources said.

The second-largest dollar bond issuer among Chinese developers (after China Evergrande), Kaisa has been in the process of restructuring its $12 billion offshore debt load after defaulting on some bonds last year. Read more>>

Moody’s Affiliate Responds to Reports of Lay-Offs, Office Closures in China

Moody’s Analytics, the financial intelligence affiliate of international rating agency Moody’s Investors Service, said it is adjusting staff globally and will continue to have a strong presence in China. It was responding to reports that it was shutting offices in the country.

“As announced during our most recent earnings call, Moody’s is taking steps to align our global workforce with current and anticipated economic conditions,” it said Friday. “Moody’s continues to maintain a strong presence in China and contribute constructively to China’s sustainable growth and the further development of its domestic markets.” Read more>>

Hopes for Normalcy Drive Hong Kong Shop Sales

Turnover for Hong Kong shop deals jumped 61.4 percent monthly to HK$1.58 billion in October as life gradually resumed as normal and visitors returned, data from Midland Realty and the Land Registry showed.

The number of transactions also rallied 25 percent to 100 after a three-month decline. Midland attributed the rise to relaxed COVID restrictions in Hong Kong. Read more>>

Shanghai Housing Slump to Worsen as Wealthy Cash Out, Leave Mainland

The downward spiral is set to continue in Shanghai’s home market as a growing number of wealthy owners plan to cash out from their properties and leave mainland China.

Some 135,400 pre-owned flats were up for sale at the end of October, an increase of 7.8 percent from a month earlier, according to Fangdi.com.cn, the official website of the local housing administration bureau. Read more>>

Singapore Home Prices Are Soaring, but New Launches Sell Well

A look at the prices that Singapore condo launches have been transacting at, especially in recent months, may perplex and intrigue the average prospective homebuyer.

The reasons behind the red-hot market include higher costs and risks for developers, a pullback in landbanking and resilient demand from regional buyers, analysts say. Read more>>

JD.com Says Worst Is Over for Consumer Demand

E-commerce firm JD.com posted an 11.4 percent rise in third-quarter revenue on Friday, beating analyst estimates as COVID-19 lockdowns in China led more consumers to shop online.

Chinese retail spending has sagged this year, with consumers frustrated by the government’s strict zero-COVID policy that has led to frequent snap lockdowns and hurt economic activity. Read more>>

Reluctant Buyers Pose Main Threat to Beijing’s Property Revival Efforts

A slew of recent supportive measures will bring China’s cash-strapped developers much needed relief, but a full recovery of the property sector will be hobbled by increasingly elusive buyers, say bankers, developers and analysts.

From a sweeping purge a couple of years ago to a series of financing measures now, China’s changed approach towards the property sector, a key pillar of the economy, reflects how dire the situation has become. Read more>>

Analyst Warns of ‘Weak Reality’ After China Real Estate Stock Surge

China’s real estate sector isn’t yet poised for a quick recovery, despite a rally this month in stocks of major property developers.

That’s because recent support by Beijing doesn’t directly resolve the main problem of falling home sales and prices, analysts say. Read more>>

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