Topic

Bondsi

Bond market action from around the world with a focus on Dim Sum debt and dollar bonds issued by Chinese firms.

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  • ‘Hiring an independent third party to perform a hypothetical liquidation analysis has no direct connection to an actual liquidation,’ company says
  • The analysis aims to show creditors and the court that a restructuring is more beneficial to stakeholders, Country Garden says

A former central bank adviser says China’s 1 trillion yuan (US$139 billion) of ultra-long term special bonds should be used to improve services for migrant workers as it seeks to boost consumption to drive its economy.

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Readers propose a possible new source of funding for the government, and suggest how cities in the Greater Bay Area could cooperate to boost the nighttime economy.

The impact of Monday’s downgrade is ‘controllable’, the second-largest Chinese developer says. Its shares rose more than 10 per cent to HK$6.30 on Tuesday on belief commercial banks will raise up to US$11.1 billion to repay its debts.

The international ratings agency has stripped state-backed property giant China Vanke of its investment-grade credit rating amid concerns over its liquidity and ability to access funding amid declining sales.

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The country’s second-largest developer has assured investors it has the funds in place to repay its outstanding offshore debts coming due soon, as its shares and bonds tumbled amid rumours about liquidity distress.

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Finance chief also issues rejoinder after predecessor slams bond issuance proposal in new budget, says past administration failed to boost land supply at the time.

Government anticipates strategy will help achieve budget surplus for 2025-26 financial year, with authorities to issue silver, green and infrastructure bonds over next five years.

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The move aims to ‘efficiently convert residents’ bank savings into bond investments’ and help develop the country’s US$22 trillion bond market, central bank says.

Immediate scrapping of property curbs, issuing of large amounts of bonds for infrastructure among measures unveiled in finance chief Paul Chan’s budget address.

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Global restructuring specialists have increased their headcount as rising defaults by Hong Kong-listed Chinese property developers requires them to enter into restructuring talks with creditors or face liquidation.

China’s latest act is to invite more foreign players to its US$232 trillion onshore repo market. As a precursor, Hong Kong will treat Chinese government bonds and policy bank bonds as eligible collateral in its yuan liquidity facility.

Striving to reduce local government debt while boosting China’s local-level economies through investment is seen as a conflicting approach, while a decline in construction machinery operations does not bode well.

Saudi Arabia’s capital market is very attractive in the eyes of global investors, and its authorities are pushing for more regulation to enhance the market’s accessibility and stability, say panellists at the Saudi Capital Market Forum.

Hong Kong is set to continue capitalising on offshore yuan funding opportunities after ‘dim sum’ bonds and loans – offshore debt denominated in the yuan – grew exponentially in 2023, regulators say.

Saudi Aramco is poised to issue bonds this year with tenures of 15 to 50 years in a bid to optimise its capital structure, Ziad Al-Murshed, the company’s CFO, said at the Saudi Capital Market Forum in Riyadh on Monday.

The Shenzhen-based developer slumped 37 per cent to close at the lowest level since its 2009 listing as the market resumed trading after the Lunar New Year break, extending a slump in the past year to 76 per cent.

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China’s property downturn and recent slew of defaults are unlikely to rattle overseas creditors or deter domestic banks from channelling resources towards cash-strapped developers, according to the American investment bank.

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Liu Pak-wai, an economics professor and former government adviser, says city’s 6 per cent debt-to-GDP ratio could easily go up to 10 per cent without problems.

The liquidation order could be difficult to implement as most of Evergrande’s assets are not in the three mainland Chinese cities covered under a cross-border scheme, according to S&P Global Ratings.

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The bank will be the nation’s first big state bank to sell loss-absorbing bonds to plug a major funding shortfall before a 2025 deadline to meet global capital requirements

Exchange Fund added HK$212.7 billion (US$27.27 billion) last year, a stunning turnaround from the record loss of HK$205.4 billion in 2022. This is the third best annual results on record.