BlackRock boss Larry Fink may see a need to cut losses on mainland developer bonds (Getty Images)
Following China’s tomb sweeping holiday which started the week, asset management giant BlackRock leads our headline roundup today with news of a cleanup in its mainland developer bond holdings, while Shenzhen-based builder Kaisa Group gets some relief thanks to an investment deal with a pair of state-backed investors.
Also in the news are a pair of developer bond sales in Singapore, while the Lion City’s growing popularity as a regional hub for multi-nationals may also be driving up residential rents.
BlackRock Cut $370M in China Developer Bond Holdings in March
The biggest investors in China’s junk property bonds reduced their exposure for the first time in months, a turning point after they previously doubled down through distress and default risks.
Institutional investors which publicly file their holdings trimmed exposure in March after adding US$3.7 billion of dollar bonds in par value terms between early November and the end of February, according to Bloomberg data. BlackRock cut US$370 million last month to bring the value of its holdings – if calculated at par – to just under US$5 billion. Read more>>
Kaisa Bonds Rally on News of Deal with China Merchants, Great Wall
Kaisa Group Holdings Ltd. dollar bonds rallied Wednesday after the defaulted developer unveiled a strategic tie-up with a state-controlled builder and one of China’s major bad-debt managers, as the government works to contain the sector’s cash crunch.
Some notes were on pace for their biggest gains in months as Kaisa announced the pact with China Merchants Shekou Industrial Zone Holdings Co. and China Great Wall Asset Management Co. to develop real estate, tourism and other businesses in an area including Hong Kong and Macau. China’s state-controlled distressed-asset firms have been moving to support cash-strapped developers at the urging of policy makers in Beijing. Read more>>
Singapore Home Rental Rates Grew Nearly 12% in Feb as Expats Flee Hong Kong
Expatriates fleeing or relocating from Hong Kong are competing for private residences in Singapore, appeasing landlords while annoying their professional peers as rents jumped at the fastest in a decade.
Rents in core central, overall central and outside central districts in the city state ranged from S$3.20 (US$2.40) to S$4.43 per square foot per month in February, according to Singapore-listed PropNex. That translates into a 10.2 per cent to 11.9 per cent increase on an annual basis.
The pace has sustained since the final quarter of 2021, when rents surged by 9.5 per cent to 11.1 per cent to a seven-year high, according to data compiled by the Urban Redevelopment Authority. Read more>>
CapitaLand Investment Issuing $294M in Bonds at 3.37%
CapitaLand Investment will be issuing S$400 million ($294 million) worth of senior notes at a fixed rate of 3.33 per cent that are due in 2027.
They will be issued at par on Apr 12 under a S$6 billion euro medium term note programme established in November last year, said the real estatement investment arm of property developer CapitaLand in a bourse filing on Tuesday (Apr 5) evening. Read more>>
Singapore’s Oxley Sells $37M in Bonds Due in 2024
Property developer Oxley Holdings has issued S$50 million ($37 million) worth of notes with a fixed interest rate of 6.9 per cent that are due in July 2024. These notes are its third tranche in a series, issued under a US$1 billion guaranteed euro medium term note programme, said the company in a bourse filing on Tuesday (Apr 5) evening.
This third tranche is to be consolidated to form a single series with the first and second tranche, both of which were issued last year, under the same programme. Read more>>
Singapore Retail Sales Down 3.4% in Feb, Ending 5-Month Rise
Singapore retail sales fell 3.4 per cent year on year in February, reversing from last month’s 12 per cent increase and snapping a 5-month growth streak.
The decline in February was attributed partly to lower sales compared to a year ago when sales were boosted by pre-Chinese New Year (CNY) spending, said the Department of Statistics (SingStat) on Tuesday (Apr 5). This year’s pre-CNY spending took place mostly in January. Read more>>
Sales of Second-Hand Homes Rose 7% in China During Q1
China’s secondary housing market started to recover in the first quarter amid loosening credit and regulatory policies, according to a report by the Beike Research Institute.
In the first quarter, sales of previously owned homes in 50 cities rose by nearly 7 percent from the previous quarter, while sales in March saw a month-on-month increase of more than 40 percent, according to the report. Read more>>
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