Chinese developers speed up asset sales to state firms amid prolonged debt crisis
- Hong Kong-listed Yuzhou Group to sell property management services company for US$168 million to subsidiary of China Resources Mixc, which is controlled by state-owned China Resources Land
- Chinese high-yield dollar bonds fell for 10th straight day, Hang Seng Properties Index dropped 1.7 per cent in morning trading on Wednesday
Hong Kong-listed Yuzhou Group Holdings said late on Tuesday that it had entered a formal agreement with a subsidiary of China Resources Mixc, which is controlled by state-owned China Resources Land, to sell its property management services company for 1.06 billion yuan (US$168 million).
The announcement came after Yuzhou said the same day that its bond due in 2023 was suspended from Wednesday, as it had missed a coupon payment for the notes.
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Logan Group is also selling a property project company to state-owned China Overseas Grand Oceans Group, according to an announcement by the buyer on Tuesday. It said that it had entered an agreement with a unit of Logan and another co-developer.
Equity interest and shareholder loans for Logan’s property project in Shantou city, co-developed with Shenzhen Yudeying Investment, will be sold for 1 billion yuan, China Overseas Grand Oceans Group said.
Yuzhou also said trading in its shares was suspended until further notice. “The company is reviewing possible options to implement a holistic solution to the current situation, with a view to secure the long-term future of the company for the benefit of all stakeholders,” it said.
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The Hang Seng Properties Index shed 1.7 per cent on Wednesday. Logan was down 1.6 per cent, China Resources Land was down 3.3 per cent but China Overseas Grand Oceans Group rose 0.9 per cent. Chinese high-yield dollar bonds fell for the 10th consecutive day on Wednesday, according to Bloomberg data.