Hong Kong is seeking to enhance its status as a global wealth hub
Hong Kong adjusts its capital investment entrant scheme in a bid to make the city more attractive to family offices, with that story leading today’s headline roundup. Also making the list, Sunac China warns creditors of a September bond default but makes progress on a debt restructuring plan.
Hong Kong Eases Investment Thresholds to Attract Family Offices
Hong Kong is easing the requirements of its capital investment entrant scheme, bolstering efforts to attract family offices and lift the city’s status as a global wealth hub.
Investments made through an eligible private company wholly owned by an applicant will be counted towards the programme starting on 1 March, according to a government statement on Tuesday. Assets owned by family members and family-owned investment vehicles will also be valid, according to a government statement. Read more>>
Sunac China Said Warning of September Bond Default
Developer Sunac China has informed some of its dollar creditors it is unlikely to meet a September bond maturity deadline, two sources said, as weak sales raise the prospects for a new round of offshore debt restructuring in the property sector.
Sunac, which used to be among China’s top developers by sales, was the first to complete a comprehensive overhaul of its $9 billion offshore debt in November 2023, after the sector was jolted by an unprecedented debt crisis in 2021. Read more>>
Sunac Bond Restructuring Seen Making Progress
Sunac China won support from holders of an onshore bond last week and will need approval from investors of two more bonds to implement debt restructuring, a source with direct knowledge of the matter said Monday.
The Beijing-based developer has already received sufficient support from holders of altogether eight of its 10 bonds to cut its onshore bond debt by more than half through a restructuring, said the source, who requested anonymity as the information has not been made public. Read more>>
Ground Broken on Cable Landing Station in Indonesia’s Nongsa Digital Park
Indonesia’s Telin and Citra Connect have broken ground on a cable landing station in Nongsa on the island of Batam.
Located within the Nongsa Digital Park, the landing station will form a key part of the Indonesia Cable Express system. The companies first announced plans to partner in September 2023 with the signing of a memorandum of understanding. Read more>>
Oversupplied Hong Kong Market Set to Welcome 10,000 New Homes in 2025
Around 10 large residential projects comprising at least 10,000 new flats will hit the Hong Kong market in 2025 as developers continue price cutting to offload inventory amid easing interest rates and an uptick in buying sentiment.
Builders with new projects expected to launch include Li Ka-shing’s flagship CK Asset Holdings, Sun Hung Kai Properties, Henderson Land, China Overseas Land and Investment, New World Development, Sino Land, Kerry Properties and Wheelock Properties. Read more>>
Shenzhen Developer Logan Floats Proposal for Restructuring $8B in Offshore Debt
Shenzhen-based developer Logan Group said Monday that it was offering a restructuring proposal for the majority of its $8.01 billion in offshore debt, including conversion to mandatory convertible bonds for its offshore creditors.
Logan seeks to restructure $7.56 billion of the total offshore debt, while also aiming to relieve creditors of its additional $476 million offshore debt under separate financing instruments. Read more>>
Industrial Sector Led India’s $2.5B in Institutional Real Estate Investment in 2024
In a landmark year for Indian real estate, institutional investments surged to $6.5 billion in 2024, reflecting 22 percent year-on-year growth — the highest inflow in five years.
The industrial segment emerged as the frontrunner, capturing a 39 percent share of total inflows with $2.5 billion in investments, marking a 190 percent rise from 2023. This performance surpassed the office segment, which secured $2.3 billion (36 percent share) in inflows. Read more>>
China Vanke Sales Slide as COLI Holds Steady
In China, no private enterprise is too big to fail, especially when market narratives change and a new industry dynamic takes shape. China Vanke, the country’s largest privately held developer, might just be in that uneasy spot even as Beijing vows to stabilise housing prices in 2025.
Vanke is facing a liquidity crunch. It’s scheduled to repay RMB 33 billion ($4.5 billion) of onshore bonds this year, versus RMB 9.3 billion in 2024. As of last June, the company no longer had enough cash to cover short-term debt. Meanwhile, property sales remain anaemic, hovering at around RMB 20 billion per month and not enough to break even at the operating cash flow level. Read more>>
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