Joseph Lau’s Chinese Estates had a rough 2021
In today’s roundup of regional news headlines, Joseph Lau’s Chinese Estates suffers a full-year loss tied to its Evergrande investments, a Singapore condo complex goes back on the market following Hong Kong developer Shun Tak’s exit from the deal, and mainland property firm Ronshine delays its earnings call after auditor PricewaterhouseCoopers resigns.
Chinese Estates Reports $447M Loss for 2021
Chinese Estates Holdings, a major ally of heavily indebted Chinese developer China Evergrande Group, swung to a loss last year as China’s housing market soured.
The Hong Kong developer controlled by the family of fugitive property tycoon Joseph Lau reported a loss of HK$3.5 billion ($447 million) for 2021, having recorded a profit of HK$622.2 million the previous year. The company said in a filing to the Hong Kong exchange that the loss was mainly due to a decline in dividend income from China Evergrande shares, as well as losses from Chinese Estates’ equity and bond investments. Read more>>
SG Condo Complex Back on Market After Shun Tak Forfeit
Freehold condominium High Point is taking another shot at a collective sale with a reserve price of S$550 million ($405 million) after Hong Kong-listed developer Shun Tak Holdings called off the en bloc deal in December.
The figure works out to S$2,508 per square foot per plot ratio after factoring in the 7 percent bonus gross floor area for balconies. The development charge payable for the 7 percent bonus GFA is S$18.8 million, according to exclusive marketing agent Savills. Read more>>
Ronshine Delays Full-Year Results After Auditor Resigns
Investors are bracing for more delays in Chinese developers’ 2021 results as Ronshine China Holdings becomes the latest to announce the resignation of its auditor.
Ronshine won’t file audited results by the end-of-March deadline, as PricewaterhouseCoopers was unable to complete its audit work because the supply of requested information had fallen behind schedule, the real estate firm said in a Monday filing with the Hong Kong stock exchange. Read more>>
China Evergrande and Subsidiaries Suspend Trading
Embattled Chinese developer China Evergrande suspended trading in Hong Kong on Monday morning, according to exchange filings.
Shares of Evergrande Property Services Group and China Evergrande New Energy Vehicle Group were also halted without giving any reasons. Read more>>
Developer Sales Figures Belie Chinese Govt Property Price Statistics
According to government statistics, China’s housing market has cooled from its hot gains of years past but is still ticking along. The average new-home price rose 1.7 percent year-on-year in January and 1.2 percent in February.
Yet financial filings, marketing materials for apartments, property agents and analysts tell a different story: debt-burdened developers are selling apartments at falling prices and in some cases providing big discounts to get cash in the door. Read more>>
Ping An to Continue Investing in Real Estate After $6.8B CFLD Debacle
Ping An Insurance, China’s largest insurer by market capitalisation, will continue to invest in real estate despite having to make a massive provision for its holding in property firm China Fortune Land Development.
Ping An last week reported a worse-than-expected 29 percent decline in net profit to RMB 101.6 billion ($15.9 billion) for 2021. This was mainly because of a RMB 43.2 billion provision it had to make for its investments in Fortune Land, of which it is the largest shareholder with a 25.2 percent stake. Read more>>
Hong Kong and Shanghai Hotels Calls Covid Its Toughest Test Yet
Known as the “grand old dame”, The Peninsula Hong Kong has withstood several tumultuous periods throughout its more than 90-year history. But the COVID-19 pandemic is the toughest challenge that the iconic hotel and its operator have faced yet, a top executive said.
The past two years have been tough for Hong Kong and Shanghai Hotels, which currently owns and operates 10 Peninsula hotels in Asia, the US and Europe. The company reported losses of HK$1.94 billion ($248 million) in 2020 and HK$120 million last year. Read more>>
China Loan Rate Cuts ‘Not Over Yet’ as Easing Continues
China kept its benchmark lending rate unchanged despite concerns over a cooling economy, the central bank confirmed on Monday, but further easing is expected.
The one-year loan prime rate — on which most new and outstanding loans are based — remained at 3.70 percent at the March fixing. Read more>>
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