Evergrande crisis: Central China Real Estate, Yango Group make last-ditch efforts to avoid bond defaults as Beijing piles on the pressure

Central China Real Estate (CCRE), based in Henan, said it had wired the funds to its trustee for a bond payment due this month

It was among developers summoned to a recent meeting where they were told by regulators to make preparations to pay their offshore debt

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Shanghai-based Yango Group has proposed exchanging US$747 million of outstanding dollar bonds due in the next two years. Photo: Reuters

Published: 6:30pm, 2 Nov 2021Updated: 10:49pm, 2 Nov 2021

More Chinese property developers have made last-minute efforts to avoid bond defaults after regulators piled on the pressure to ensure embattled home builders repay their debts on time.

Central China Real Estate (CCRE), a Henan-based developer, said on Tuesday that it had remitted the funds to pay back all principal and interest on a dollar bond due this month. That would mean the funds, in their entirety, are now with a trustee who will transfer the money to the bondholders.

Meanwhile, Yango Group, a Shanghai-based peer, has proposed exchanging US$747 million of outstanding dollar bonds due in the next two years, according to a filing on Monday to the Hong Kong Stock Exchange, where the bonds were trading.

The eleventh-hour moves came as Beijing switched the focus of its crackdown on debt in the property sector to developers’ liabilities in the offshore market. The industry continues to bear the brunt of a nationwide campaign to contain a property bubble and prevent financial risks from spreading.

CCRE’s shares in Hong Kong lost 0.9 per cent to HK$1.12 on Tuesday. Its bond due November 8, with US$363.2 million outstanding, was trading at 98 cents on the dollar in the morning.

Yango’s stock shed 6.7 per cent in Shenzhen, and its US$200 million dollar bond due January 11 was indicated at 22.05 cents on the dollar.

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