Peter Ma Mingzhe, founder and chairman of Ping An Insurance Group (Image: Ping An)
The continuing decay in China’s real estate sector leads today’s collection of headlines from around the region, with Moody’s downgrading one of the country’s largest developers to junk. Also making the list today, PGIM launches a tech-powered investment platform and NTT opens a new data centre in Malaysia.
Ping An Real Estate Credit Rating Cut to Junk
Credit rating agency Moody’s stripped Chinese property firm Ping An Real Estate and its offshoot Ping An Real Estate Capital of their investment-grade credit ratings on Wednesday in the latest downgrades in the troubled sector.
Moody’s said it had withdrawn the entities’ respective Baa2 and Baa3 “issuer ratings” and replaced them with Ba1 and Ba2 junk-rated “corporate family ratings”. Read more>>
PGIM Real Estate Launches Research Lab RealAssetX
PGIM Real Estate has launched a research and innovation lab, RealAssetX, to develop new real assets technologies through university partnerships.
The lab will work in the fields of sustainable tech, artificial intelligence and deep tech to facilitate the works of owners, operators and managers of real assets. Read more>>
NTT Launches Data Centre in Malaysia’s Cyberjaya
NTT has launched a new data centre in Cyberjaya. NTT GDC this week announced the launch of CBJ6, the sixth data centre at the company’s campus in the Malaysian city.
The new facility offers 7 megawatts across 4,890 square metres (52,635 square feet) and densities of up to 15 kilowatts per rack. The company has invested $50 million in the project. Read more>>
Mirae Marketing Seoul Office Tower at $224M
Mirae Asset Securities is seeking to sell off its Seoul-based office building, the value of which is estimated at KRW 300 billion ($223.7 million), banking sources said Wednesday.
The brokerage arm of South Korea’s Mirae Asset Financial Group has recently sent requests for proposal to financial advisors to start a bidding process for the property located in Yeouido financial district, sources added. Read more>>
China Property Creditors Face Worsening Restructuring Terms
As more Chinese developers move towards restructuring billions of dollars of debt, their offshore creditors are expected to face another setback: the prospects of revamp terms being tightened due to a worsening outlook for the county’s real estate sector.
So far, developers accounting for 40 percent of Chinese home sales have defaulted on their debt obligations since 2021, according to JPMorgan. Those defaulted companies, mostly private, have issued around $110 billion worth of high-yield offshore bonds. Read more>>
China Home Perks Fail to Lure Buyers
More than 80 percent of surveyed Chinese households remain unwilling to enter the property market or unsure about doing so despite Beijing’s slew of easing measures, according to Morgan Stanley, citing a recent poll of around 2,000 consumers.
Among the respondents, 42 percent expect lower home prices over the next 12 months, compared with 23 percent that anticipate an increase, the bank said. Read more>>
China Evergrande Crisis Seen Linked to US Bankruptcy Filing
China Evergrande Group, once the nation’s biggest property developer, may be living out its final days as a solvent entity, with its survival hanging precariously by a thread. A winding-up petition in Hong Kong later this month could deliver the knockout blow.
Saddled with RMB 2.4 trillion ($327 billion) in liabilities, the developer is attempting to reorganise about $20 billion in defaulted debt and claims in what is currently the largest workout by a Chinese company with offshore creditors. Read more>>
Singapore Seen Winning Out Over Hong Kong
ANZ Group Holdings chief executive Shayne Elliott said his customers moved more of their business to Singapore from Hong Kong in the past few years as the smaller Asia Pacific trading hub narrows the gap to its larger rival.
An increasing number of clients at Elliott’s firm have chosen to invest their regional treasury capabilities in Singapore, he said. ANZ Group now has about 800 people in Singapore, double its headcount in Hong Kong. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on X, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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