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☆ China puts Country Garden on draft list of builders to support -Bloomberg News
▼ + stars: | 2023-11-22 | by ( ) www.reuters.com time to read: +3 min

The company logo of Chinese developer Country Garden is pictured at the Shanghai Country Garden Center in Shanghai, China August 9, 2023. REUTERS/Aly Song/File Photo Acquire Licensing RightsNov 22 (Reuters) - China has placed debt-laden Country Garden Holdings Co (2007.HK) on a draft list of 50 developers eligible for a range of financing support, Bloomberg reported on Wednesday, citing people familiar with the matter. Country Garden declined to comment. Once China's biggest private property developer, Country Garden missed a coupon payment in October, triggering default terms. It is unclear what specific measures will be taken to support the developers on the draft list.

Persons: Aly, CIFI, Bloomberg, Ting Meng, Nomura, Devika Nair, Xie Yu, Kim Coghill, Clarence Fernandez Organizations: Shanghai Country Garden, REUTERS, Garden Holdings, HK, Bloomberg, Ocean Group, CIFI Holdings, Reuters, Wednesday, Regulators, Country, ANZ Bank China, Thomson Locations: Shanghai, China, Beijing, Bengaluru, Hong Kong

Developers, financial advisers and bondholders said that could make debt restructuring terms much worse than expected earlier. DEFAULTING DEVELOPERSThe property sector accounts for roughly a quarter of the world's second-largest economy. That could trigger off one of the world's biggest debt restructuring exercises. However, a turnaround (in the property sector) may need more," said Chuanyi Zhou, Asia corporate analyst at Columbia Threadneedle Investments, which holds Sunac's bonds. Chinese policymakers rolled out a range of support measures in late August and early September to revive the property sector.

Persons: Shimao, Chuanyi Zhou, Yuzhou, Edward Al, Clare Jim, Xie Yu, Davide Barbuscia, Sumeet Chatterjee, Kim Coghill Organizations: HONG KONG, JPMorgan, HK, Shimao, CIFI Holdings, Columbia Threadneedle Investments, Developers, Reuters, Kaisa, Columbia, China Index Academy, Thomson Locations: HONG, China, Asia, Hong Kong, New York

☆ China Risks Property Debt
▼ + stars: | 2023-09-26 | by ( ) www.reuters.com time to read: +8 min

Source: China Real Estate Information Corp. (CRIC)The physical size of Country Garden’s real estate portfolio is enormous. The Weight of Debt The ballooning debt crisis could delay the prospect of a recovery of both the property market and the broader Chinese economy, in which real estate is a core pillar. China property sector slump China’s property sales, investment and funds raised by property developers slid in January - August 2023 after a sharp fall in 2022. China's property sector accounts for more than half of global new home sales and home building, according to Nomura. Any contraction in the property sector will affect China’s growth, thus sending ripple effects around the globe as the world’s factory slows.

Persons: Evergrande, homebuyers, Nomura, David Stanway, Jason Lee, –, Moody's, Yawen Chen, Amr Alfiky Organizations: Country, Garden, Estate Information Corp, CIFI Holdings, Sunac, National Bureau of Statistics, China, Investment, REUTERS, International Monetary Fund, Nomura, JPMorgan, Dubai, National Bureau of Economic Research Locations: China, Burj, Burj Khalifa, Sunac China, Kunming, Yunnan province, Beijing, Xuchang, Henan province, United Arab Emirates

☆ China's central bank to guide more financial resources to support private sector
▼ + stars: | 2023-08-03 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Jason Lee/File PhotoBEIJING, Aug 3 (Reuters) - China's central bank governor pledged on Thursday to guide more financial resources towards the private economy, suggesting refreshed urgency from Beijing to bolster the confidence among private firms as economic momentum weakens. During a meeting on Thursday with at least eight private firms from sectors including property, aluminium and agribusiness, the People's Bank of China (PBOC) Governor Pan Gongsheng said the bank would roll out guidelines to support private firms. Responding to some firms' requests of broadening bond financing channels, Pan said the central bank would expand debt financing tools for them. "Financial institutions should actively create a positive atmosphere to support the development and growth of private firms ... and increase willingness to lend." To revive confidence among private businesses, head of the economic planner also held several meetings with private firms last month to learn about their operation difficulties.

Persons: Pan, Jason Lee, Pan Gongsheng, Ellen Zhang, Ryan Woo, Ella Cao, Jon Boyle, Alison Williams Organizations: People's Bank of China, Congress, REUTERS, HK, China Hongqiao, Chint, Thomson Locations: Beijing China, BEIJING, Beijing, China, Hope

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.

☆ 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.

☆ Two Chinese property developers to raise funds via discounted share sales
▼ + stars: | 2022-12-20 | by ( ) www.reuters.com time to read: +1 min

HONG KONG, Dec 20 (Reuters) - CIFI Holdings (0884.HK) on Tuesday became the latest Chinese property developer to raise funds by selling new shares at discounted prices, while Agile Group (3383.HK) announced its second such capital raising since November. After a raft of government measures supported their share prices, a number of developers including heavyweights like Country Garden (2007.HK) have since November turned to top-up share placements. Guangzhou-based Agile said it would raise HK$617.2 million ($79.3 million) by selling shares at HK$2.32 apiece, a 17.4% discount to Monday's closing price. It is the second top-up placement for Agile since November when it raised HK$783 million. The companies, which saw their shares slide in line with the discounted share sale prices, said they would use the proceeds to repay existing debt.

HONG KONG/SHANGHAI/BEIJING, Dec 2 (Reuters) - China has ordered its top four state-owned banks to issue offshore loans to help developers repay overseas debt, three people with knowledge of the matter told Reuters, rolling out its latest support measure for the cash-starved property sector. The regulators have given 'window guidance', or verbal orders that leave no paper trail, to the banks, setting a date of Dec. 10 by which to make the loans secured against domestic assets, two of the sources said. Funds received after the latest step will allow developers to repay offshore loans and dollar bonds in a bid to repair global investors' bruised confidence in the sector, two of the sources said. Each of the four banks, Bank of China (601988.SS), China Construction Bank (601939.SS), Industrial and Commercial Bank of China (601398.SS) and Agricultural Bank of China (601288.SS), will pick several developers to fund, the three sources said. The People's Bank of China, the central bank, and the China Banking and Insurance Regulatory Commission (CBIRC) did not immediately respond to Reuters' requests for comment.

Funds flowing from banks will allow developers to repay offshore loans and dollar bonds, helping to repair global investors' bruised confidence, two of the sources said. Each of the four banks, Bank of China (601988.SS), China Construction Bank (601939.SS), Industrial and Commercial Bank of China (601398.SS) and Agricultural Bank of China (601288.SS), will pick several developers to fund, the three sources said. The third source said that, while the big four banks preferred fresh lending to go to state-backed developers, they would have to include some private firms, which have a greater need for offshore loans. Chinese banks make offshore loans secured against domestic assets to companies that need foreign funds, but regulatory tightening in the last couple of years to rein in debt-fuelled empire-building by corporates hampered that kind of lending. China's central bank will also offer cheap loans to financial firms to buy bonds issued by property developers, separate sources have told Reuters.

☆ 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.

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.

☆ 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.

☆ In China’s Property Sector, There Is Nowhere to Hide
▼ + stars: | 2022-10-19 | by ( Jacky Wong | ) www.wsj.com time to read: +1 min

China on Monday suddenly delayed the release of its economic data—including September housing sales—that was scheduled for this week. But there is little doubt that the property market is still in a dire shape and likely won’t get better without more determined help from Beijing. While defaults for property developers in China have become a common event, the recent one from CIFI Holdings still rocked the market. The company said last week that it missed an interest payment on a Hong Kong dollar-denominated convertible bond. It blamed the missing payment on a weeklong holiday in China, which delayed the remittance of funds.

☆ China's CIFI misses offshore interest payments due to remittance delay
▼ + stars: | 2022-10-13 | by ( ) www.reuters.com time to read: +1 min

HONG KONG, Oct 13 (Reuters) - Shanghai-based property developer CIFI Holdings (0884.HK) said in a Thursday filing it did not meet certain offshore scheduled interest and amortisation payments due to delay in remittance during an extended holiday in mainland China. Analysts said the debt is a HK$2.5 billion ($319 million) convertible bond with an interest payment due on Oct. 8. Shares of CIFI slid 8.6% as of 0558 GMT, and Country Garden lost 7.8%. CIFI said in its filing conversations with its creditor groups were constructive and progressing towards consensual solutions. ($1 = 7.8493 Hong Kong dollars)Register now for FREE unlimited access to Reuters.com RegisterReporting by Clare Jim; Editing by Tom HogueOur Standards: The Thomson Reuters Trust Principles.

☆ CIFI shares fall further, bonds mixed after clarification
▼ + stars: | 2022-09-29 | by ( Xie Yu | ) www.reuters.com time to read: +2 min

Hong Kong-listed shares of CIFI were down 25.6% at HK$0.64 after hitting a record low of HK$0.63 earlier in the session. The stock fell 32.3% on Wednesday after reports said the company had missed payment on certain non-standard debt. The company said it made interest payment on Wednesday in respect to its offshore 6.55% senior notes due 2024. CIFI's dollar bonds strengthened marginally across the curve after the filing, but its onshore bonds broadly continued to fall on Thursday. A broader index tracking mainland developers listed in Hong Kong (.HSMPI) fell 2.5%, adding to its 6.4% fall on Wednesday and hitting a record low.

☆ Beijing’s property bandage fails to staunch blood
▼ + stars: | 2022-09-29 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, Sept 29 (Reuters Breakingviews) - Another day, another Chinese property market selloff. Hong Kong-listed CIFI (0884.HK) on Wednesday confirmed that it defaulted on an onshore trust loan linked to a property development, blaming slow sales. By the next morning, panicked investors had already wiped out half of CIFI’s market value, some $765 million. The stronger parts of the property market are weakening, and fast. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ CIFI Holdings says it is seeking solutions after news of missed payment
▼ + stars: | 2022-09-28 | by ( ) www.reuters.com time to read: 1 min

SHANGHAI, Sept 28 (Reuters) - Chinese real estate developer CIFI Holdings (Group) (0884.HK) said the company is in active communication with financial institutions and seeking solutions, in response to news of missed debt repayment. Hong Kong-listed shares of CIFI tumbled more than 25% on Wednesday, and bonds also plunged, after credit intelligence provider Reorg reported that the Chinese developer missed payment of certain non-standard debt. The Shanghai Stock Exchange said trading in a CIFI bond was suspended due to abnormal fluctuations. Register now for FREE unlimited access to Reuters.com RegisterReporting by Shanghai Newsroom; Editing by Himani SarkarOur Standards: The Thomson Reuters Trust Principles.

☆ Housing might be struggling in China but there are green shoots in commercial property
▼ + stars: | 2022-09-13 | by ( Su-Lin Tan | ) www.cnbc.com time to read: +7 min

Commercial property is a bright spot in Chinese real estate, in contrast with the doom and gloom of the residential housing market. Likewise, property group CIFI Holdings posted a 23% year-on-year drop in home sales in China for the first half, but reported a 69.5% lift in its property investment revenue. While some investors sold assets to stay liquid, Spiro said the commercial sector generally has more supportive government and fiscal policies. All in all, the Chinese commercial property sector's resilience lies in its ability to rebound faster than its residential counterpart. Down but not outBut unlike housing, the commercial sector is rebounding particularly after lockdowns ended and government incentives kicked in, CBRE said.

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