China Home Prices Fall Again Despite Bailout and More Asia Real Estate Headlines

China’s home prices continued their slide in June, with that story leading Mingtiandi’s headline roundup today. Also making the news, Goldman Sachs aims to raise $2 billion for its first APAC-focused private equity fund and Hong Kong tycoon Adrian Cheng seeks to list his venture fund on the Swiss stock exchange.

China Home Prices Fall Sharply Despite Rescue Efforts

China’s home prices fell again in June, underscoring the challenge for policymakers to halt the property market slump that’s hurting developers and the economy.

New home prices in 70 cities, excluding state-subsidised housing, dropped 0.67 percent from May, when they slid 0.71 percent, the most since October 2014, National Bureau of Statistics figures showed Monday. Values of existing homes declined 0.85 percent, compared with a 1 percent decrease a month earlier. Read more>>

Goldman Sachs Targets $2B for First Asia-Focused PE Fund

Goldman Sachs aims to raise $2 billion for its first Asia Pacific-focused private equity fund, two people with knowledge of the bank’s fundraising plan said, as it looks to deepen exposure to some of the world’s fastest-growing economies.

The fundraising effort comes as private equity firms in Asia reshape investment strategies and country allocations amid geopolitical tension, a higher interest rate environment, market volatility and macroeconomic headwinds. Read more>>

New World CEO Adrian Cheng to List Venture Fund in Switzerland

Hong Kong property tycoon Adrian Cheng is listing his venture fund C Capital on the Swiss stock exchange through a merger.

The company will merge with Swiss-listed investment firm Youngtimers and the entity will be renamed C Capital upon approval and completion of the transaction, according to a statement on Monday. Read more>>

Hong Kong Landlords Boost Commissions to Fill Empty Offices

Hong Kong’s billionaire landlords are paying agents larger commissions for bringing in office tenants as developers struggle to fill empty commercial space in the Asian financial hub.

Paying commissions worth two to three months of rent is the new norm, up from just one month several years ago, according to real estate agents familiar with the matter, asking not to be named discussing private matters. Some are getting as much as four months for landing tenants, one of the people added. Read more>>

Willmar CEO’s Family Buying Singapore Bungalow for $36.4M

A steady stream of transactions is continuing to surface in the creme de la creme of the Singapore landed housing segment, good-class bungalows.

Property market watchers described the transacted prices as being on the low side, reflecting softer sentiment earlier this year, which may have led serious sellers to adjust their expectations. Read more>>

Hong Kong Developers Keep Discounting to Sell Homes

Hong Kong developers continue to rely on attractive pricing as a strategy to clear their swollen stock as interest rate cuts and a stronger economic recovery fail to materialise, according to analysts and the latest price lists for sales that are soon to launch.

New price lists for New World Development and Far East Consortium’s Pavilia Forest III project in Kai Tak and Early Light International Holdings’ The Uppland in Tuen Mun both have average prices per square foot well below recent launches in nearby developments — by more than a third for Pavilia Forest III and 10 percent for The Uppland. Read more>>

China’s Economic Growth Comes In Worse Than Expected

China’s economy slowed more than expected, with second-quarter GDP rising 4.7 percent to mark the weakest pace in five quarters.

Official data offered more evidence of an uneven recovery, with industrial output climbing 5.3 percent in June to top estimates, even as retail sales grew by a much weaker-than-expected 2 percent. Read more>>

Ping An Insurance Sells $3.5B in Convertible Bonds

Ping An Insurance priced an offering of $3.5 billion in convertible bonds, joining a wave of issuance of the equity-linked instruments in Asia over the past few months.

The company sold the bonds due in 2029 with a coupon of 0.875 percent, according to a statement to the Hong Kong stock exchange on Tuesday. The initial conversion price is HK$43.71 ($5.60) per H share, representing a premium of 21.3 percent to the stock’s closing price on Monday. Bloomberg News earlier reported on the deal, citing people familiar with the matter. Read more>>