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Ever Grande Bonders Override Options As Chinese Property Bonds Suffer On Shares

On September 26, 2021, a man walks past a no-entry traffic sign near the headquarters of the China Evergrande Group in Shenzhen, Guangdong Province, China. REUTERS / Aly song / files

  • Some Evergreen bonds to discuss the missed fee on Friday
  • Fantasia Coastal Bond trading ceased after falling more than 50%
  • Evergrande Dollar-Bond Trustee Appoints City Mayor Brown as Advisor
  • Evergrande will have to pay nearly $ 150 million in coupons next week

SHANGHAI / SINGAPORE, Oct 8 (Reuters) – Chinese property developers’ bonds and shares plunged on Friday, with some restrictions on local regulators proposing to control the epidemic from China Evergrande Group, which is next facing $ 150 million in debt at sea. Week

Evergrande (3333.HK), Which faces one of the country’s biggest mistakes as it wrestles with more than $ 300 billion in debt, has already lost paying coupons on dollar bonds twice in the past month.

Some of Evergrande’s coastal journalists will be calling on Asian Time Friday evening last month.

«At this point, there is a call for a group of bondholders to come together so they can negotiate better,» the person said because he did not have the authority to speak to the media.

«Everyone is trying to get some information so they can start planning their next move.»

Bloomberg first announced that a few dollar bonds were called by advisers on Friday at 0630 EST (1030 GMT) to discuss the strategy.

Evergrande Dollar-Bond Trustee City (CN) The law firm has appointed Mayor Brown as an adviser, a separate source familiar with the matter, who declined to be named due to the sensitivity of the matter. City and Mayor Brown declined to comment.

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Reuters reported last month that the group of securities had previously selected investment bank Moilis & Co and law firm Kirkland & Ellis as potential advisers to restructure a bond. read more

The decline of one of China’s largest borrowers has raised concerns about the risk of infection to the property sector in the world’s second-largest economy as its debt-laden counterparts are downgraded by valuable shortcomings.

That uncertainty hit coastal securities issued by property companies such as the Kaisa Group (1638.HK), Central China Real Estate (0832.HK) And Greenland (600606.SS) China ended Friday with a week-long National Day break.

Evergrande shares have been put on hold as they demanded a ceasefire on Monday pending a major transaction announcement.

Shanghai Stock Exchange on Friday suspended trading in two bonds issued by small developer Fantasia Group Chinese company. (1777.HK) He missed the $ 206 million international market loan deadline on Monday.

«Generally, the default of a small company is seen as unique. However, now that so many Chinese developers are given tight cash flow, market participants are questioning whether this would be a precursor to the voluntary default of other developers with healthy short-term liquidity levels. But the big long-term debt,» Zhang Wei Liang said. , Credit & FX Strategist, said in a note at DBS Bank.

In a statement on Thursday evening, Fantasia Group said its operations were normal and maintained close contact with investors. It also said it «actively promotes credit service security measures.»

Continuous risk

Xiamen Yuo Grand Future Real Estate Development, Yango Group Maritime Bonds (000671.SZ) And Guangzhou R&F properties (2777.HK) Friday also collapsed.

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China Iowa Group (3883.HK)Although the company said in a statement that it had deposited funds to pay for another maritime bond that matures by October 12, outstanding bonds fell 8.18% in March 2025.

Concerns surrounding the Evergrande epidemic are hitting landline stock prices and pulling the real estate watchdog mark. (.CSI000952) Blue-chip stocks fell 1.53% during the day, up 1.31% (.CSI300).

Hong Kong Property and Construction Code, Hong Kong (.HSCIPC) After gaining 0.72% in afternoon trade, the broader Hong Cheng Index gained 0.26% (.HSI).

Chinese regulators have not commented specifically on Evergrande since the October 1 holiday, although the central bank last Wednesday urged financial institutions to cooperate with relevant departments and local governments to maintain the «sustainable and healthy» growth of the property market and security. Home Consumer Benefits.

In a comment late Thursday, the state-backed Global Times said officials’ adherence to credit limits, known as the «three red lines», «reduces the risk that China has its own priorities and is focused on reducing the real estate bubble.» «

Investors have been waiting for Evergrande since its shares were suspended from trading on Monday.

Evergrande Property Services Group (6666.HK), Sought to stop a cycle listed last year and it was referred to as a «potentially common offer for shares of the company».

While the sale of assets temporarily alleviates concerns surrounding Evergrande’s cash flow, analysts believe the debt of Evergrande and some other Chinese real estate companies is too large to settle quickly.

China’s high-yield debt index (.Meracy), Dominated by developer providers, has been slipping throughout the week and reached its lowest level in more than five years on Friday morning. It is possible to view a wide range of records very quickly.

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Additional Report by Andrew Calbright, Anshuman Dhaka, Scott Murdoch, Vidya Ranganathan, Megan Davis in New York; Editing by Sam Holmes, Stephen Coates and Ana Nicolasi da Costa

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