In the near future, real estate companies will issue bonds in the open market for financing, while banks and other institutional investors will assist via bond investment, the paper said.ĭebt-laden developers including Evergrande and Kaisa have also been looking to raise cash to repay their many creditors by selling some of their property and other business assets.īeijing has been prodding government-owned firms and state-backed property developers to buy some of Evergrande's assets to try to control the fall. Underlining the liquidity squeeze, some real estate firms disclosed plans to issue debt in the inter-bank market at a meeting with China's inter-bank bond market regulator, the Securities Times reported on Wednesday. 4.Īlso read: Property shares drop as Chinese developer Modern Land defaults on bond payment

Shares of developer Fantasia Holdings (1777.HK) plunged 50% on Wednesday after it said there was no guarantee it would be able to meet its other financial obligations following a missed payment of $205.7 million due on Oct. Worries over the potential fallout from Evergrande have also slammed the bonds of Chinese real estate companies. S&P considers a rating under 'BBB-' to be speculative grade. S&P Global Ratings said separately it had downgraded Shimao Group Holdings' (0813.HK) rating to 'BB+' from 'BBB-' over concerns that tough business conditions would hinder the company's efforts to reduce debt. The developer has coupon payments of more than $59 million due on Thursday and Friday. Kaisa has the most offshore debt of any Chinese developer, after Evergrande. Moody's Investors Service on Wednesday downgraded Kaisa Group (1638.HK), which on Tuesday made a desperate plea for help, citing liquidity risks, limited financial flexibility and weak recovery prospects for its creditors. More developers are seeing their credit ratings slashed on their worsening financial profiles. Federal Reserve warning on Tuesday that China's property sector could pose global risks.

There was a brief lull in mid-October after Beijing tried to reassure markets the crisis would not be allowed to spiral out of control.īut concerns have resurfaced, with the U.S. The world’s most indebted real estate developer, China Evergrande Group, has avoided default at least for now after making a key interest payment at the 11th hour.The Chinese property. 28.Ĭhina's property woes rattled global markets in September and October.

It also has coupon payments totalling more than $255 million on its June 20 bonds due on Dec. Evergrande's problems add to concerns about a liquidity squeeze in the property sector.

Evergrande bond default