Wanda’s Wang Jianlin is getting funny looks from financial regulators (Getty Images)
In today’s roundup of regional news headlines, costly provisions in a Dalian Wanda unit’s IPO plan raise eyebrows at China’s securities regulator, and Kaisa Group becomes the latest mainland developer to warn of a massive loss in its forthcoming results.
China Regulator Questions Dalian Wanda on Unit’s Planned Hong Kong IPO
China’s securities regulator is scrutinising a unit of conglomerate Dalian Wanda Group about $4.4 billion in payments it might have to make if a mainland mall business doesn’t go public in Hong Kong this year.
The China Securities Regulatory Commission sent a letter to Dalian Wanda Commercial Management Group inquiring about the delayed initial public offering of Zhuhai Wanda Commercial Management Group and how it might affect debt repayment capabilities. Read more>>
Kaisa Forecasts Loss of Up to $2B for 2022
Embattled Chinese developer Kaisa Group Holdings on Friday forecast a net loss of RMB 12 billion to RMB 14 billion ($1.7 billion to $2 billion) for fiscal 2022, as delivery delays hurt its sales.
The Shenzhen-based company earlier this month published its long-delayed results for fiscal 2021 in which it reported a loss of RMB 13.26 billion. Read more>>
Japan Hotel REIT Completes $64M Buy of Tokyo Property
Japan Hotel REIT Investment Corporation announced Friday that it had completed the acquisition of Sotetsu Fresa Inn Shimbashi-Karasumoriguchi.
The listed trust paid JPY 8.4 billion ($64 million) for the hotel in central Tokyo. Read more>>
Rattled Chinese Developers Turn to Business They Disdained
China’s embattled real estate developers are flocking to a field of business that they derided a decade ago, as the country’s worst housing downturn dries up cash and income.
Instead of buying land and owning projects from scratch, a growing number of property firms have begun providing construction services as contractors. Read more>>
China’s Mysteriously Resilient Real Estate Prices — Explained
China’s property market is a cornerstone of its economy, and its recent downturn is often blamed for eviscerating local government finances, sowing the seeds for even greater challenges.
But China’s government has shrugged off concerns about the plunge in land sales. What gives? A deeper look at the issue offers insights into the Chinese financial system, and explains why land prices — despite the downturn — have largely held up. Read more>>
PBoC Props Up China’s Housing Market
A healthy housing market is critical to China’s economic growth and financial stability, but slowing home sales, driven by pandemic restrictions and demographic shifts, has unsettled both real estate developers and home buyers.
The People’s Bank of China has responded by lowering mortgage interest rates, which has contributed to the fragmentation of the Chinese housing market across different tiers of cities. Read more>>
Moody’s Withdraws Mapletree North Asia Commercial Trust’s Ratings
Moody’s Investors Service has withdrawn Mapletree North Asia Commercial Trust’s Baa2 issuer rating and the ratings on several issued notes.
Before the withdrawal the rating outlook of MNACT was stable. Moody’s said it decided to withdraw the ratings for its own business reasons. Read more>>
Shanghai Targets 5% Growth in Property Investment in 2023
Shanghai has a goal of 5 percent growth in property investment in 2023, the city’s house management bureau said Friday, after investment in the city’s property sector shrank by 1.1 percent in 2022.
The metropolitan city of 26 million people was hit hard by strict COVID lockdowns a year ago, trapping property buyers at home and disrupting construction by real estate developers. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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