In today’s roundup of regional news headlines, contagion fears abound as China Evergrande’s liquidity crisis puts pressure on bonds issued by other mainland and the cash-strapped developer reveals that executives made early redemptions of some of the group’s investment products.
In non-Evergrande updates, CapitaLand debuts on the SGX under its new ticker, and there are new happenings at Henderson Land and Mitsubishi Estate.
China Evergrande Group’s liquidity crunch is stoking concerns that other developers may also feel the squeeze from higher borrowing costs as lenders turn more cautious about the nation’s weakest borrowers.
The effective yield on bonds sold by Chinese junk-rated companies, a measure of funding cost, jumped last week to 15.8 percent, according to an index compiled by Intercontinental Exchange, up from 10.5 percent on 30 June. The 226 bonds in the index, dominated by property names, have lost 7.4 percent on average this month, taking the decline this year to 15.4 percent. Read more>>
China Evergrande Group bondholders are about to find out if the property giant’s liquidity crisis is as dire as it appears.
Interest payments on two Evergrande notes come due Thursday, a key test of whether the developer will continue meeting obligations to bondholders even as it falls behind on payments to banks, suppliers and holders of onshore investment products. Investors are pricing in a high likelihood of default, with one of the notes trading at less than 30 percent of face value. Read more>>
Six executives of China’s heavily-indebted Evergrande had redeemed some of the company’s investment products in advance earlier this year, the property group said Saturday.
Between 1 May and 7 September, the six executives made early redemptions of 12 investment products, Evergrande said in a statement on its website, without identifying the executives or giving details on the nature of the products. Read more>>
Real estate investment manager CapitaLand Investment on Monday made its trading debut at S$2.95 on the Singapore Exchange under the trading name CapitaLandInvest and stock code 9CI.
CapitaLandInvest takes over from CapitaLand Ltd, which on 9 September ceased trading at S$4.00 and will delist from the SGX on Tuesday at 9am. Read more>>
CK Hutchison may turn Hongkong United Dockyards into another Whampoa Garden, mainland media have reported.
Located on Tsing Yi, the dockyard covers over 100,000 square metres (1,076,391 square feet). At least 10,000 units can be expected to be built if the company applies to convert the site into residential use, assuming a five-times plot ratio and an average area of 500 square feet per unit. Read more>>
Hong Kong homebuyers were hesitant on the second day of weekend property sales on Sunday, amid an increase in supply that had left them with more options.
Henderson Land Development had sold 60 flats, or 47 percent, of the first 128 units on offer at The Holborn project in Quarry Bay as of 5.40pm, according to real estate agents. Sales at the Mangrove and La Marina projects a day earlier were brisk, defying banks’ jitters and helping developers to clear 94 percent of the stock. Read more>>
Japanese property developer Mitsubishi Estate has begun asking its suppliers for information about carbon emissions sparked by construction materials like cement and steel, a move that could force a rethink of traditional construction methods and materials, Nikkei has learned.
The request was made to large general contractors that Mitsubishi Estate works with. The real estate company plans to ask contractors to use power generated with renewable energy. Read more>>
The hot property market has sparked a recruitment war between real estate agencies, with all manner of inducements rolled out to entice agents to jump ship.
Agencies are offering hefty cash incentives for agents to sign on with them, as well as training and technology subsidies, and penalty support schemes to reimburse agents who incur fees for changing firms. Read more>>