Bloomberg – China Evergrande Group passed another debt term with no signs of payment, after the coupons matured on Tuesday on two dollar notes, both with a 30-day grace period before a default can be declared.
Evergrande has been focusing its attention on delivering homes and paying workerseven as debt payments loom. The property developer was first rated delinquent by international rating firms earlier this month after failing to pay its obligations on time. The payment and transfer agent for the last two bonds is Citibank London Branch, according to a document seen by Bloomberg News. Tuesday was a public holiday in the UK.
A Bloomberg gauge that tracks stocks in Chinese real estate companies fell as much as 2.2% on Wednesday, marking its biggest decline since December 20. China Aoyuan Group Ltd. fell as much as 10% after receiving a subpoena in a loan case. China Evergrande, which rose 7.4%, and was unchanged around 3pm in Hong Kong. Its shares have plummeted 89% this year.
Centaline stops marketing a project in the UK (5:56 pm Hong Kong time)
Real estate agency Centaline will immediately stop marketing and selling Evergrande’s Emerald Bay residential project in Hong Kong while seeking commissions owed by the Chinese developer, according to a statement. The company claims from Evergrande a value equivalent to 113 million Hong Kong dollars (US $ 14.5 million) for commissions related to the sale of 520 apartments.
The Chinese promoter stock indicator suffers the biggest drop in more than a week (2:48 p.m. HK)
The index was heading for its biggest drop since December 20. China Aoyuan and China South City Holdings Ltd., which fell as much as 7.4%, were among the biggest declines in the index. China Evergrande oscillated between gains and losses as the debt matured.
Guangzhou R&F creates an escrow account for the expansion of dollar bonds (11:43 a.m. HK)
Guangzhou R&F Properties has opened an escrow account with Citibank to facilitate the settlement of its proposed debt offering, according to a document filed with the exchanges. The company expects to commit funds of approximately $ 300 million, comprising funds from the escrow account and available cash, before the settlement date.
China South City pays a coupon of US $ 18.8 million in dollar bonds (9:43 a.m. HK)
China South City has paid off the coupon on its 10.875% dollar bond due June 2022, an investor relations official at the developer said on Wednesday. The companies have transferred the US $ 18.8 million interest payment to the note’s administrator, the official said, adding that the actual coupon date is Wednesday due to holidays. The original date was Sunday, according to data compiled by Bloomberg. China South City has three dollar bonds totaling US $ 970.5 million maturing in 2022.
Chinese companies slow investment and unwilling to borrow: China’s Beige Book (7 a.m. HK)
Chinese companies reduced investment and remained reluctant to borrow in the fourth quarter, and small business financing costs soared despite favorable policies, China’s International Beige Book said in a report published on Wednesday, while the growth of services slowed down “in general”. The easier credit environment for real estate in November reversed this month, according to the report.
Additionally, it became more expensive for smaller businesses to borrow, with the gap between interest rates on loans for small and large businesses skyrocketing to 2.73 percentage points, the highest level since the survey began. in 2012, according to the report.
This is so despite a series of policies aimed at helping smaller companies, and that the central bank directed general credit growth to pick up in November to counteract the slowdown in the economy, dragged down by the fall in the real estate sector and sporadic outbreaks of Covid-19.
The stability of the Chinese economy is clouded by the real estate and export prospects (5 a.m. HK)
The Chinese economy expanded at a moderate pace in the last month of the year, supported by better business sentiment, easing inflationary pressures from factories and accelerating car sales. However, the fall in the real estate sector and the slowdown in external demand cast a shadow over the prospects for the second world economy.
– With the assistance of Alice Huang.
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