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The Hong Kong unit of China Aoyuan Group Ltd. agreed to sell three property investment holding companies. Sunac is also planning to sell its vast culture and tourism business, people familiar with the matter said late last week. Yango Group Co. extended the expiration deadline for a dollar bond exchange offer.
The spate of moves to improve liquidity comes amid investor concerns over the strength of the country’s largest property firms and their ability to refinance debt. Those worries abated slightly as Chinese junk dollar bonds continued to rebound late last week amid signals that authorities will offer support to ease the liquidity crunch.
Key Developments:
Yango Extends Exchange Offer Deadline to Nov. 17 (8 a.m. HK)
Yango Group has extended the expiration deadline for its dollar bond exchange offer and consent solicitations to 4 p.m. London time on Nov. 17, according to a Hong Kong stock exchange filing. The settlement of new notes, delivery of exchange and consent consideration to eligible holders is scheduled on or about Nov. 23 under the new timetable.
China Aoyuan to Sell Hong Kong Property Assets for HK$900m (7:43 a.m. HK)
Aoyuan Property (Hong Kong), a unit of China Aoyuan, agrees to sell three property investment holding companies and the loan they owe to the unit for cash to private investor Norman Ng Tang Fai, according to filing to Hong Kong stock exchange Sunday evening.
Assets of the holding companies comprise of flats and car parking spaces at Yin Yee Mansion on Robinson Road, Hong Kong Island. Aoyuan expected to recognize estimated loss of about HK$176.6 million ($22.7 million) from the sale. The company will use net proceeds for repayment of HK$600 million loan facility and general working capital.
Kaisa Group Will Not Pay Interim Dividend (7:35 a.m. HK)
The board of Kaisa Group Holdings Ltd. has resolved that the interim dividend will not be paid, it said in a filing late on Friday. Trading will remain halted until further notice.
Cash-strapped Kaisa is trying to sell property assets with an estimated value of $12.8 billion. Its slow progress on disposals has increased the likelihood it defaults on dollar-bond interest payments at some point, Fitch Ratings said in its latest downgrade last week, citing risks including undisclosed debt from wealth management products and declining sales.
S&P Global (NYSE:SPGI) Ratings said Thursday in its ratings cut that “a default scenario is inevitable within six months.”
China Developer Sunac Raises $953 Million; Chairman Issues Loan (7:22 a.m. HK)
Sunac raised about $953 million through the sale of new shares as well as a stake in its property management unit, the latest Chinese developer to seek funds amid an industry-wide liquidity crunch. It sold 335 million shares at a price of HK$15.18 each, raising about $653 million, in a statement Sunday, confirming an earlier story by Bloomberg News.
Another $300 million came from a sale of 158 million shares in its property management arm Sunac Services Holdings Ltd., via a subsidiary. Sunac Services shares were sold at HK$14.75, a discount of 11% to Friday’s closing price.
China CBIRC to Maintain Stable Property Prices, Expectations (7:15 a.m. HK)
China will continue to curb the “financialization of real estate” and prevent the sector from turning into a bubble, the banking and insurance regulator says in a statement late Friday. It will maintain stable prices of land and housing, improve the long-term mechanism for real-estate regulation, and continue to step up efforts to handle non-performing assets and regulate shadow banking, the statement said.
PBOC Says to Maintain Steady, Sound Property Market Development (7:10 a.m. HK)
The Chinese central bank will resolutely curb monopoly and the disorderly expansion of capital in the financial services sector, adding it will maintain steady and sound development of the property market, it said in a statement late Friday.
A look at Evergrande’s maturity schedule:
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