The Beike team just celebrated their NYSE listing in August 2020
In today’s roundup of regional news headlines, a report says housing broker Beike is contemplating a Hong Kong stock listing, debt-laden Evergrande’s heavy discounts fail to boost property sales, and analysts fear that China may be going too far with efforts to cool the real estate market.
China’s Beike Exploring Hong Kong Listing
China’s biggest housing broker, KE Holdings, is planning a Hong Kong stock market listing and has hired Goldman Sachs to lead a float, two people with direct knowledge of the matter told Reuters.
Beijing-based KE, which is backed by Tencent Holdings and SoftBank Group, raised $2.1 billion in its New York IPO last year, making it the second-largest US listing for a Chinese company at the time. Read more>>
Hong Kong Steps In to Protect Buyers of Ho Man Tin Flats
Hong Kong’s government said buyers of an unfinished residential complex in Ho Man Tin can terminate their contracts and be entitled to refunds with interest, as local authorities step in to prevent the city’s first half-done project in decades from hurting consumers.
Customers of the Grand Homm project are entitled to their refunds, including interest, within seven days of the cancellation of their sales agreements, according to a statement by the Sales of First-hand Residential Properties Authority. Read more>>
Evergrande’s Heavy Discounts Fail to Boost August Sales
China Evergrande Group’s aggressive discounts failed to boost property sales in August, underscoring how the debt-laden developer’s efforts to raise cash are squeezing profitability.
The company’s average selling price slid 11.5 percent in August from a month earlier to the lowest since July 2016, Bloomberg calculations based on a Friday filing showed. Read more>>
China Property Crackdown Spooks Analysts
Warnings that China’s campaign to cool its property market will go too far are multiplying.
Economists at Nomura Holdings are calling the curbs China’s “Volcker Moment” that will hurt the economy. The credit squeeze in the property sector is “unnecessarily aggressive” and may weigh on industrial demand and consumption, wrote colleagues at Bank of America. A prominent Chinese economist cautioned of a potential crisis should home values drop below mortgages. Read more>>
Kaisa Reports September Surge in Home Sales
Kaisa Group realised contracted sales of RMB 7.9 billion ($1.2 billion) last month involving a gross floor area of 453,724 square metres (4,883,844 square feet).
For the first eight months, accumulated contracted sales were RMB 81.85 billion, up 49 percent year-on-year, putting Kaisa at 63 percent of its target for the year. Read more>>
Fantasia Bonds Rejected by International Private Banks
The private banking units of Citigroup and Credit Suisse Group have stopped accepting the bonds of Fantasia as collateral amid rising concerns about the Chinese developer’s financial health, according to insiders.
The banks have assigned a zero lending value to the notes, meaning their private-wealth clients can no longer use them as security for loans. Read more>>
Swaying Shenzhen Skyscraper Reopens After Haircut
The SEG Plaza, the 72-storey building that grabbed headlines and set off a construction ban on super skyscrapers in China with its wobbling, reopened for business in Shenzhen after shutting for 113 days.
A pair of masts measuring 60 metres (197 feet) that stood at the tower’s roof were dismantled, after engineers blamed them for the “vortex-induced resonance” that caused the building to tremble. Read more>>
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