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☆ China developer Country Garden shares extend losses on debt worries; others fall
▼ + stars: | 2023-07-24 | by ( ) www.reuters.com time to read: +1 min

SHANGHAI/SINGAPORE, July 24 (Reuters) - Shares and bonds in Chinese property developer Country Garden (2007.HK) and its property service arm Country Garden Services Holdings (6098.HK) tumbled on Monday, extending losses from the previous week on debt concerns. More liquidity troubles surfaced in China's property sector last week, sending down shares and bonds of the country's biggest developers. Country Garden Services Holdings shares slumped more than 10% on Monday, while Country Garden fell more than 5%, with both down to their lowest level since last November. Two onshore-traded bonds of Country Garden , plunged roughly 20% each, and some of its offshore-listed bonds also declined. Shares in other developers, including Longfor Group (0960.HK), China Overseas Land & Investment (0688.HK) and Sunac China Holdings (1918.HK), also slumped on Monday.

Persons: Jason Xue, Tom Westbrook, Kim Coghill, Jamie Freed Organizations: HK, Garden Services Holdings, Country Garden Services Holdings, Mainland Properties, CSI, Longfor, China Overseas Land & Investment, Sunac China Holdings, Thomson Locations: SHANGHAI, SINGAPORE, China, Shanghai, Singapore

☆ China property shares rise on financial support policy
▼ + stars: | 2023-07-11 | by ( Clare Jim | ) www.reuters.com time to read: +2 min

HONG KONG, July 11 (Reuters) - Shares of Chinese property developers rose on Tuesday after regulators extended some policies in a rescue package introduced in November to shore up liquidity in the embattled sector. Analysts said while the extended policy could ease the short-term financial pressure on property developers and ensure their home project completions, new measures would be needed to tackle the cash crunch in the sector. The sector has been hit by many company defaults amid a debt crisis since mid-2021, triggered by non-repayments of China Evergrande Group (3333.HK), the world's most indebted property developer. Sunac China (1918.HK), Logan Group (3380.HK) and KWG Group (1813.HK) listed in Hong Kong were among the top gainers, rising 4%-5%. Nomura said the "band-aid-style" policy support on Monday is unlikely to revive property sales, which have been weak for months, as it does little to restore home buyers' confidence.

Persons: Nomura, Clare Jim, Himani Sarkar, Sonali Paul Organizations: Analysts, China Evergrande, HK, Mainland Properties, CSI, Logan Group, KWG, People's Bank of China, CIMB Securities, Thomson Locations: HONG KONG, China, Hang, Hong Kong

July 11 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. All else equal, this would be a tailwind for Asian stocks, bonds and currencies. A New York Fed survey of consumer and inflation expectations was also "risk-friendly." Sentiment toward Asian stocks in recent months has been mostly bearish, with the exception of Japan, but a pause in the selling on Monday lifted the gloom a little. Chinese and broader Asian stocks rose for the first time in four sessions, while the yuan and yen strengthened to two-week highs against the dollar.

Persons: Jamie McGeever, Marguerita Choy Organizations: New York Fed, Mainland Banks Index, Ant, Thomson, Reuters Locations: U.S, Japan, underperformance, Hong Kong, Mainland, Philippines, Australia, Germany

MSCI's broad Asia ex-Japan index shed 1.5% last week, its third consecutive week without rising, and is flat for the year. Much of that is due to the sluggishness of China's markets, and key indicators from the region's largest economy on Monday will get the trading week underway. Annual producer price inflation, already the most negative since 2016, is seen falling to -5.0% from -4.6% in May. Chinese banking stocks, measured by the Hong Kong-listed Hang Seng Mainland Banks Index (.HSMBI), plunged 10.5% last week. Reflecting just how poorly China's post-lockdown economy has performed relative to consensus forecasts, Citi's Chinese economic surprises index has now fallen 11 weeks in a row.

Persons: Jamie McGeever, Janet Yellen's, Yellen, Fed's Barr, Daly, Mester, Diane Craft Organizations: U.S, Mainland Banks Index, Treasury, China CPI, PPI, Thomson, Reuters Locations: China, New Zealand, South Korea, Wall, MSCI's, Asia, Japan, Hong Kong, Mainland, underperformance

☆ Hong Kong stocks slump on worries about Chinese banks, US interest rates
▼ + stars: | 2023-07-06 | by ( Laura He | ) edition.cnn.com time to read: +2 min

Hong Kong CNN —Hong Kong stocks on Thursday recorded their worst day in four months, after Goldman Sachs downgraded major Chinese banks on local government debt risks and the US Federal Reserve gave a hawkish outlook. Financial shares led the sell-off, after Goldman Sachs downgraded several Chinese banks. The Hang Seng Mainland Banks Index, which tracks mainland Chinese banks listed in Hong Kong, plummeted 6.5%. These banks face earnings risks stemming from their exposure to China’s local government debt, the Wall Street firm said. Sentiment in Hong Kong markets was also affected by the Fed’s hawkish rate outlook.

Persons: Goldman Sachs, Xi Jinping’s, ” “, ”, Stephen Innes, Janet Yellen, Biden, Korea’s Kospi Organizations: Hong Kong CNN, US Federal Reserve, Asia Pacific . Financial, Mainland Banks Index, Commerical Bank of China, Industrial Bank, Bank of China, Bank of Communications, Huaxia Bank, US, Nikkei Locations: Hong Kong, Asia, Mainland, “, China, Beijing, Shanghai

July 7 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. Friday's non-farm payrolls report for June could cement the hawkish outlook for U.S. rates and yields. The MSCI World share index on Thursday posted its biggest decline since April, while the MSCI Asia ex-Japan index had its biggest fall since February and second biggest this year. The Hang Seng Mainland Banks Index (.HSMBI) tumbled 6.4% on Thursday to a new low for the year, its biggest one-day fall since February 2018. It is down almost 10% this week, also on course for its biggest weekly fall in more than five years.

Persons: Jamie McGeever, Janet Yellen, Yellen, Goldman Sachs, Goldman, Josie Kao Organizations: Treasury, Investors, Mainland Banks Index, . Treasury, Thomson, Reuters Locations: Asia, Japan, Korean, China . U.S, Beijing, China, Hong Kong, Mainland, South Korea

☆ China bank shares slump in Hong Kong after Goldman downgrades
▼ + stars: | 2023-07-05 | by ( ) www.reuters.com time to read: +1 min

SHANGHAI, July 5 (Reuters) - Chinese banking shares listed in Hong Kong tumbled on Wednesday after Goldman Sachs downgraded top lenders including Agricultural Bank of China (AgBank) in a report that raised questions over the sector's financial health. Meanwhile, Industrial and Commercial Bank of China (ICBC) and Industrial Bank (601166.SS) were both downgraded from "Buy" to "Sell". Agbank shares fell roughly 3% in Hong Kong, on track for their biggest one-day loss in nearly two months. In its report, Goldman said it expects Chinese banks' dividend yields would come in at 4-6% this year, two percentage points lower than before the adjustment. The bank also revised down pre-provision operating profit estimates for large Chinese banks by 5-6% this year and next.

Persons: Goldman Sachs, Goldman, Agbank, Himani Sarkar, Kim Coghill Organizations: Agricultural Bank of China, Mainland Banks Index, Industrial, Commercial Bank of China, Industrial Bank, Shanghai, Thomson Locations: SHANGHAI, Hong Kong, Mainland, ICBC's Hong Kong, China

☆ China cuts lending benchmarks to revive slowing demand
▼ + stars: | 2023-06-20 | by ( ) www.reuters.com time to read: +4 min

REUTERS/Thomas Peter/FILE PHOTOSHANGHAI/SINGAPORE, June 20 (Reuters) - China cut its key lending benchmarks on Tuesday, the first such reductions in 10 months as authorities seek to shore up a slowing economic recovery, although concerns about the property market meant the easing was not as large as expected. The one-year loan prime rate (LPR) was lowered by 10 basis points to 3.55%, while the five-year LPR was cut by the same margin to 4.20%. The People's Bank of China (PBOC) lowered short- and medium-term policy rates last week. "There is no need to roll out all policy measures all at once." Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.

Persons: Thomas Peter, Julian Evans, Pritchard, Xing Zhaopeng, Xing, China's, Bruce Pang, Jones Lang LaSalle, Winni Zhou, Tom Westbrook, Kripa Jayaram, Sam Holmes Organizations: Central Business, REUTERS, Capital Economics, Reuters, Mainland Properties, People's Bank of China, ANZ, Jones, Graphics, Thomson Locations: Beijing, China, SHANGHAI, SINGAPORE, outpacing

☆ China cuts two more key lending rates as economy sputters
▼ + stars: | 2023-06-20 | by ( Clement Tan | ) www.cnbc.com time to read: +1 min

The People's Bank of China has cut several key policy rates to bolster economic growth in the world's second-largest economy. The People's Bank of China cut two more key lending rates on Tuesday for the first time in 10 months to prop up growth in the world's second largest economy. The Chinese central bank cut the one-year loan prime rate by 10 basis points from 3.65% to 3.55%, and trimmed the five-year loan prime rate by 10 basis points from 4.3% to 4.2% — for the first time since August. "On their own, 10bps cuts are too small to make a great deal of difference to monetary conditions, especially since market interbank rates are already below policy rates," Capital Economics' Julian Evans-Pritchard and Zichun Huang wrote in a note. "But the PBOC tends to use changes in policy rates as signaling tool, with the heavy lifting being done by other tools such as adjustments to reserve requirements and bank loan quotas," they added.

Persons: Julian Evans, Pritchard, Zichun Huang Organizations: People's Bank of, People's Bank of China, Country Locations: People's Bank of China, Hong Kong

☆ China's Country Garden posts 90% dip in 2022 core profit, record net loss
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, March 30 (Reuters) - China's top property developer Country Garden Holdings (2007.HK) said on Thursday its core profit plunged 90% in 2022 and it posted a record net loss, hurt by a sluggish property market and a debt crisis in the sector. Country Garden said core profit, which excludes changes in the value of assets and financial instruments and foreign exchange, was 2.6 billion yuan ($377.36 million), down from 26.9 billion yuan the previous year. It however posted a net loss of 6.1 billion yuan, a reversal from 26.8 billion yuan net profit in 2021. "The property sector is still under great strain." Its total interest-bearing debts fell 15% to 271.3 billion yuan and its net gearing ratio was 40%, down 5.4 percentage points from end-2021.

HONG KONG, March 13 (Reuters) - Top Chinese property developer Country Garden Holdings (2007.HK) said on Monday it expected to post its first net loss since listing in 2007 due to a sluggish property market and flagged a worse-than-feared drop in core profit. Country Garden said in a filing its estimated net loss would be between 5.5 billion yuan to 7.5 billion yuan ($799 million to $1.09 billion), down from a 26.8 billion yuan profit in 2021. It said core net profit was expected to be in the range of 1 billion yuan to 3 billion yuan, still positive but down sharply from 26.9 billion yuan in 2021 and well below analysts' forecasts for core profit around 9.3 billion yuan, according to SmartEstimate. Smaller developer Logan Group Co Ltd 3380.HK also said it expected to record a net loss of 7 billion yuan to 9 billion yuan for 2022. "We expect to see more profit warnings for both China property and property management ahead," said Raymond Cheng, head of China research at CGS-CIMB Securities Ltd.

☆ Property developer China Vanke raises nearly $500 million in share sale
▼ + stars: | 2023-03-02 | by ( ) www.cnbc.com time to read: +1 min

A crane with the China Vanke logo at a residential construction site in China, on Sept. 28, 2021. Major property developer China Vanke said on Thursday it had raised 3.92 billion Hong Kong dollars ($499 million) in a share placement in Hong Kong, in the first test of investor appetite towards a mainland developer share sale in 2023. State-backed Vanke said in a filing that it sold 300 million shares at HK$13.05 per share, versus their offer price range of between HK$12.93 to HK$13.20 apiece, according to the term sheets of the deal launched on Wednesday and seen by Reuters. Vanke shares fell as much as 5.3% to HK$13.16 early on Thursday, but narrowed losses to 3.7% by noon, versus a 0.5% fall in the Hang Seng Mainland Properties Index .HSMPI. It added it will not use the proceeds for new domestic residential development projects.

HONG KONG/SYDNEY, March 2 (Reuters) - Major property developer China Vanke Ltd said on Thursday it had raised HK$3.92 billion ($499 million) in a share placement in Hong Kong, in the first test of investor appetite towards a mainland developer share sale in 2023. Vanke shares fell as much as 5.3% to HK$13.16 early on Thursday, but narrowed losses to 3.7% by noon, versus a 0.5% fall in the Hang Seng Mainland Properties Index (.HSMPI). JP Morgan said Vanke's placement, while not a "total surprise", came earlier than expected because it is in a blackout period prior to earnings announcement. Vanke's share sale represented 13.6% of its enlarged H shares and 2.51% of its enlarged total share capital, including both shares issued in Hong Kong and Shenzhen. ($1 = 7.8490 Hong Kong dollars)($1 = 6.8942 Chinese yuan)Reporting by Scott Murdoch and Clare Jim; Editing by Muralikumar Anantharaman and Himani SarkarOur Standards: The Thomson Reuters Trust Principles.

☆ China property shares rise on easing of mortgage rules for some buyers
▼ + stars: | 2023-01-06 | by ( ) www.reuters.com time to read: +1 min

HONG KONG, Jan 6 (Reuters) - Shares of Chinese property developers climbed on Friday, lifted by more state support measures to bolster the highly indebted sector as China prepares to reopen its pandemic-hit economy. The property sector, which accounts for a quarter of China's massive economy, was badly hit last year after developers were unable to finish building projects that led to mortgage boycotts by some home buyers. Lockdowns and movement control measures to control the spread of COVID-19 also hurt buyer sentiment. The housing authorities also vowed to give strong support to first-time home buyers by allowing smaller down payments and cutting mortgage interest rates. Reporting by Clare Jim and Donny Kwok; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.

An index tracking high-yield dollar bonds of Chinese developers (.IBXXAX13) has jumped more than 70% from its Nov. 3 low, but is still down about 70% from its peak in May, 2021. A growing list of Chinese developers have entered into or are preparing to kick-off debt restructuring talks with offshore bondholders after defaulting on payments. Of 241 dollar-denominated bonds issued by Chinese property firms, 211 are trading in distressed territory below 50 cents on the dollar, Refinitiv data shows. The recent rally in developers' shares and bonds on the back of funding support measures, however, has given investors some respite. "A recovery in property sales would be firmer in a re-opening scenario," said Justin Ong of Columbia Threadneedle, which holds China property bonds, as it would offer a clearer timeline for re-opening.

☆ China property shares surge on opening up of equity financing option
▼ + stars: | 2022-11-29 | by ( Reuters Staff | ) www.reuters.com time to read: +1 min

REUTERS/Aly SongHONG KONG (Reuters) - Shares of Chinese property companies soared on Tuesday after the country’s securities regulator lifted a ban on equity refinancing for listed property firms, in the latest support measure for the embattled real estate sector. The China Securities Regulatory Commission (CSRC) said late on Monday it would broaden equity financing channels, including private share placements for China and Hong Kong-listed Chinese developers, lifting a years-long ban. The latest regulatory measure comes Beijing steps up support for the property sector, a pillar accounting for a quarter of the world’s second-biggest economy. Beijing suspended refinancing by listed property firms in August 2009 as part of its attempts to control surging home prices. Regulators briefly lifted the suspension by granting approval to refinancing requests by a selection of property firms starting from 2013, but imposed back restrictions in 2016 to curb housing prices.

☆ China property sector surges on fundraising support, but COVID protests cloud outlook
▼ + stars: | 2022-11-29 | by ( Xie Yu | Jason Xue | ) www.reuters.com time to read: +5 min

The move is the latest regulatory easing as Beijing steps up support for the property business, a sector that accounts for a quarter of the Chinese economy. Yuan-denominated bonds issued by Chinese developers CIFI Group, Guangzhou Times Holdings, Country Garden rocketed between 20% and 50% each on Tuesday. “Most of the funding channels the property developers need are covered now,” said Gary Ng, senior economist at Natixis. “It is now up to whether the market, or basically the state players will actually support the sector,” he said. If funds could be raised from state-backed investors, there will be meaningful consolidation in the property sector, Ng said.

☆ China's stocks, yuan tumble as COVID protests rattle nerves
▼ + stars: | 2022-11-28 | by ( ) www.reuters.com time to read: +4 min

A U.S. crackdown on Chinese tech giants citing national security concerns also weighed on shares of technology firms. Nevertheless, the social unrest and rising coronavirus cases had fuelled expectations of an earlier end to China's zero-COVID policy, putting a floor under stocks and boosting tourism and consumer shares. "The market does not like uncertainties that are difficult to price and the China protests clearly fall into this category. While state media has not reported the protests, photos and videos of the protests circulated on social media. "The demonstrations ... mean the current COVID policy mix is no longer politically sustainable.

HONG KONG/BEIJING, Nov 24 (Reuters) - China's biggest commercial banks have pledged at least $162 billion in fresh credit to property developers, bolstering recent regulatory measures to ease a stifling cash crunch in the sector and triggering a rally in property shares. Three state-owned banks lined up around $131 billion worth of credit lines to developers on Thursday, a day after three other lenders committed $31 billion, responding to Beijing's call for support. The massive, coordinated injection of liquidity into the property sector buoyed the shares of major developers on Thursday. PSBC late on Thursday announced that it would provide a total of 280 billion yuan in financing to Country Garden as well as others. China Construction Bank Corp (601939.SS) signed cooperative agreements with eight property developers, including Vanke, Longfor and Midea, financial media outlet Yicai reported.

The plan comes as the cash-strapped sector has struggled with defaults and stalled projects, hitting market confidence and weighing on the world's second-largest economy. Policymakers' previous efforts to help financing has done little to bolster the property market. The Hang Seng Mainland Properties Index (.HSMPI) jumped 16.2%, with the share prices of many Chinese property developers posting double-digit gains. The notice "introduced by far the most comprehensive set of support measures for the ailing property market," it said. Some investors remained cautious about the impact of the latest policy, however, as regulators have already made many attempts to revive the property sector and the macro environment remains weak amid the country's COVID restrictions.

☆ China plan to restore sector liquidity boosts property stocks
▼ + stars: | 2022-11-14 | by ( ) www.reuters.com time to read: +1 min

HONG KONG, Nov 14 (Reuters) - Chinese property stocks soared on Monday as the market cheered an aggressive plan outlined by Chinese regulators to shore up liquidity in the embattled sector, with the sub-index surging close to a two-month high in early trading. The Hang Seng Mainland Properties Index (.HSMPI) gained 15%, while top property developers Country Garden (2007.HK) soared 33%, narrowing gains after rallying as much as 52% to the highest since July 27. Longfor Group (0960.HK), Agile Group (3383.HK), R&F Properties (2777.HK), Logan Group (3380.HK) and KWG Group (1813.HK) all jumped almost 30%. Two sources told Reuters a notice to financial institutions from the People's Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) outlined 16 steps to support the industry, including loan repayment extensions, in a major push to ease a deep liquidity crunch that has plagued the property sector since mid-2020. Reporting by Clare Jim; Editing by Ana Nicolaci da Costa and Bradley PerrettOur Standards: The Thomson Reuters Trust Principles.

☆ China's property shares jump as regulators outline new financing package
▼ + stars: | 2022-11-14 | by ( ) www.reuters.com time to read: +1 min

HONG KONG, Nov 14 (Reuters) - Chinese property stocks soared on Monday as the market cheered a new aggressive financing package outlined by Chinese regulators to shore up the liquidity of its embattled property sector, with the shares of many major companies surging over 14%. Large property developers Country Garden (2007.HK), Longfor Group (0960.HK), CIFI Holdings (0884.HK) and Greentown China (3900.HK) all jumped close to 15% at market open. The Hang Seng Mainland Properties Index (.HSMPI) gained 9.7%. Two sources told Reuters a notice to financial institutions from the People's Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) outlined 16 steps to support the industry, including loan repayment extensions, in a major push to ease the deep liquidity crunch which has plagued the property sector since mid-2020. Reporting by Clare Jim; Editing by Ana Nicolaci da CostaOur Standards: The Thomson Reuters Trust Principles.

☆ Chinese property stocks soar on fresh regulatory support
▼ + stars: | 2022-11-09 | by ( Xie Yu | Clare Jim | ) www.reuters.com time to read: +2 min

HONG KONG (Reuters) -Chinese property developers’ share prices surged on Wednesday after regulators expanded a financing programme aimed at supporting bond issuance in the crisis-ridden sector. REUTERS/Aly SongCIFI Holdings (Group) Co Ltd soared 40% while Country Garden Holdings Co Ltd surged 23%. The National Association of Financial Market Institutional Investors late on Tuesday said it will widen a programme to support about 250 billion yuan ($34.5 billion) worth of debt sales by private firms, including property developers. The move comes as cash-strapped property developers struggle to tap sources of funding to finish projects and pay suppliers. Still, there will likely be more defaults given weak recovery in property sales, Chen said.

☆ China's CIFI suspends all offshore debt payments, starts restructuring
▼ + stars: | 2022-11-01 | by ( ) www.reuters.com time to read: +3 min

HONG KONG, Nov 1 (Reuters) - Shanghai-based property developer CIFI Holdings (0884.HK) said on Tuesday it has suspended payments on all of its offshore debt after it failed to reach an agreement with creditors to which it owes $414 million in total. CIFI said in a filing it has engaged Haitong International Securities Company Limited as financial advisor and Linklaters as legal adviser to facilitate a restructuring of its $6.85 billion offshore debt, as it is likely to come under continued pressure to generate sufficient cash flows for repayments. CIFI and Longfor had borrowings of 114 billion yuan ($15.61 billion) and 212 billion yuan, respectively, as of June, and Greenland had 122 billion yuan. But it added its offshore debt issues do not materially affect its onshore financing arrangements as a whole and that its commercial operations remain normal. CIFI said on Oct. 13 it had not met certain offshore interest and amortisation payments due to delays in remittances during an extended holiday in mainland China.

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