Login

Lost your password?
Don't have an account? Sign Up

More Chinese developers seek domestic bond issuance By Reuters



© Reuters. FILE PHOTO: Surveillance cameras are seen near a real estate project under construction in Shenzhen, Guangdong province, China November 8, 2021. REUTERS/David Kirton

SHANGHAI (Reuters) – Three Chinese developers, including the main operation platforms of Country Garden Holdings Co and Longfor Group Holdings Ltd, plan to sell bonds in China to raise a combined 18 billion yuan ($2.83 billion), the official registration system showed late on Wednesday, evidence Beijing is marginally easing liquidity strains on the cash-strapped sector.

China tightened financing curbs on the real estate industry early this year, exacerbating financial problems at indebted developer China Evergrande Group and triggering sector-wide liquidity stress that some feared could destabilise China’s economy.

In recent weeks there have been signs that some financing channels are being marginally relaxed for developers.

According to the filing system of China’s interbank debt market, Country Garden Real Estate Group, controlled by Country Garden Holdings, plans to issue medium-term notes worth 5 billion yuan.

Chongqing Longhu Enterprise Development Co, the main platform of Longfor Group, plans to issue 3 billion yuan of debt.

Separately, the state-owned developer China Overseas Enterprise Development Group Co aims to issue three tranches of debts totalling 10 billion yuan, according to the registration filing.

There have been other signs of life in the domestic bond market for developers. Corporate bonds issued by real estate companies nearly tripled in November from the previous month, to 37.1 billion yuan, official China Securities Journal reported on Wednesday.

There are also signs of marginal lending relaxation. Last month, sources told Reuters financial regulators had told some Chinese banks to issue more loans to property firms for project development.

But Chinese authorities have given no signal that they will relax the “three red lines” – financial requirements the central bank introduced last year that developers must meet to get new bank loans. Analysts have said Beijing will continue its deleveraging campaign against developers despite the recent policy tweaks.

($1 = 6.3673 renminbi)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

https://pixadz.com/hcm