In today’s roundup of regional news headlines, China is said to be mulling further measures to jump-start its ailing property market, and cash-strapped builder Country Garden delays a deadline for onshore bondholders to vote on a payment extension. Also making the list are Sino-Ocean’s bond win and CPPIB’s Hong Kong staff cuts.
China is set to take further action, including relaxing home-purchase restrictions, as it scrambles to tackle a deepening crisis in its massive debt-riddled property sector, four people familiar with the matter said.
In the coming weeks, regulators — including the housing ministry, central bank and financial regulator — will implement measures they have been working on over the past few months under State Council guidance, two of the sources said. They plan to act as existing policies have failed to sustain a sector rebound earlier this year, the sources added. Read more>>
CPP Investments, Canada’s biggest pension fund, has laid off at least five investment professionals at its Hong Kong office as it steps back from deals in China, three people with knowledge of the matter said.
Most were on the fund’s private equity team and were informed early last month, according to two of the people. The departures have not been previously reported. Read more>>
Country Garden Holdings is delaying a deadline again for the holders of an onshore bond to vote on several proposals regarding the note repayment, in its latest struggle to avoid what would be its maiden bond default.
China’s sixth-largest developer by sales pushed the deadline back by one day to 10pm Beijing time on Friday, according to filings to the Shanghai Stock Exchange’s private disclosure platform that were seen by Bloomberg News. The delay on the voting deadline is to give sufficient time for bondholders to discuss and decide on the proposals, according to the filings. Read more>>
Sino-Ocean Group has won bondholder approval to extend repayment for an onshore note, giving the state-backed developer some breathing room to cope with an industry-wide cash crunch.
Sino-Ocean’s announcement, made in a stock exchange filing, confirmed a Bloomberg News report earlier Thursday that the developer’s representatives had told some of the note’s investors it has secured enough support for the proposal. Read more>>
China’s home sales tumbled for a third straight month in August, underscoring the need for policymakers to step up efforts to address a slowdown that’s weighing on the world’s second-largest economy.
The value of new home sales by the 100 biggest real estate companies fell 33.9 percent from a year earlier to $47.2 billion, according to preliminary data from China Real Estate Information. Sales slid 1.3 percent from July. Read more>>
Vacancies are rising in China’s most exclusive office buildings as businesses look to reduce rental expenses during the country’s disappointing economic recovery.
While cost-cutting by companies represents a sensible response to tougher times, it threatens to make things worse in China just as growing fears about the property sector have prompted global banks to scale back their forecasts for growth in Asia’s largest economy. Read more>>
The Walt Disney Company this week broke ground on its third themed hotel at its Shanghai resort, in what the visiting US Commerce Secretary Gina Raimondo hailed as a display of “American soft power”.
Construction on the yet-unnamed hotel started Thursday on the shores of the resort’s Wishing Star Lake in Pudong district, according to a statement by the Shanghai Disney Resort. Read more>>
US-based Fortress Investment Group will sell assets from Sogo & Seibu for nearly JPY 300 billion ($2.06 billion) after acquiring the Japanese department store operator, Nikkei has learned, planning to use the money to pay back loans taken out for the purchase.
After the transaction is completed, Fortress will sell the land and part of the flagship Seibu department store building in Tokyo’s Ikebukuro district, as well as part of the Sogo Chiba store and Seibu Shibuya store, to Japanese electronics retailer Yodobashi Holdings. Total asset sales will reach just below JPY 300 billion. Read more>>