Property sales at Shimao Group’s Shanghai-listed unit sink 62 per cent in February
- Shanghai Shimao reported contracted sales of US$158.4 million last month
- Moody’s downgrades Logan Group’s credit rating on concerns over the developer’s liquidity and access to funding
Shimao, founded by Hui Wing Mau, also known as Xu Rongmao, in 1989, was regarded as a sound and restrained developer until it fell victim to Beijing’s draconian tightening measures to curb the real estate industry in late 2021.
The collective sales value of China’s top 100 developers fell 47.2 per cent in February from last year to US$63.6 billion, widening the slump from a 41 per cent contraction in January, according to the China Real Estate Information Corporation, which compiles industry data.
Meanwhile, Moody’s Investors Service downgraded Chinese developer Logan Group’s credit rating on Monday on concerns over the company’s liquidity and access to funding amid weak market sentiment.
The developer’s corporate family rating was lowered to B2 from Ba3, and the company’s senior unsecured ratings to B3 from B1.
Moody’s also forecast that Logan’s contracted sales will decline notably over the next six to 12 months, driven by weaker homebuyer confidence and diminishing saleable resources as the company slows its land acquisitions amid tight funding conditions.
Shenzhen Logan faces debt repayment of 5.3 billion yuan this month.