Every day Mingtiandi scans the web and curates the day’s biggest stories for you. Here’s what we found today:
Evergrande Cans Plans for Bottled Water Listing
China’s Evergrande Real Estate said it has cancelled plans to list its spring water unit and intends to merge it with grain, oil and dairy assets instead.
The country’s second-largest property developer by sales had planned to list loss-making Evergrande Spring on the New Third Board for small enterprises, in what would have been the third spin-off in a month for the indebted company. Read more>>
China Developer Bonds Top Gainers as Default Scares Forgotten
China’s central bank has helped developers lead a world-beating rally in emerging-market property dollar debt, in a turnaround for an industry that suffered a landmark default earlier this year.
Future Land Development Holdings, which builds shopping malls in eastern China, has given holders of its 2018 notes a 13.5% return since December 31, the best in a Bloomberg index of dollar bonds from emerging-market builders. The 2021 securities of Country Garden Holdings Co, controlled by China’s second-richest woman Yang Huiyan, made 12.3%. Read more>>
New World Development Says Net Earnings Rise 96%
A looming interest rate increase and an anticipated rise in home supply could see Hong Kong home prices fall, New World Development chairman Henry Cheng Kar-shun said after his company posted a 4 per cent rise in underlying profit to HK$6.77 billion for the year to the end of June.
Net profit jumped 96.52 per cent to HK$19.11 billion, partly helped by a stronger contribution from property sales and a 122 per cent year-on-year increase in revaluation gains on property investments. Read more>>
Former Harvest Capital Partners Chief Positive on Real Estate’s Long-Term
China’s real estate market has been on an upward trend since its privatisation about 25 years ago and has become known as the “golden era” over the past two decades because most developers have delivered high returns to shareholders through aggressive land-bank building, leveraging to the limit, and by taking advantage of cheaper financing sources.
Coupled with a strong sales momentum and various support measures introduced by the central and especially the local governments, real estate has contributed attractive returns to developers in a “quick and effortless” way. Read more>>
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