Monday, January 24

Shares Fall After Hui Sale; Fantasia Delay: Evergrande Update

China’s stressed-out developers face bond payments of nearly $ 1.3 billion in December, including a unit of China Evergrande Group, which will see a grace period ending in the middle of next month. Meanwhile, Fantasia Holdings Group Co. obtained approval to delay the early repayment of a local bond by two years.

Evergrande plunged 8.8% in Hong Kong on Monday, extending the biggest two-day drop in more than four months, after its billionaire president sold shares last week at a discount. The 8.75% developer note due 2025 was indicated little change at 23.9 cents on the dollar. A gauge of real estate stocks fell 1.6%, extending losses this year to 31%.

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Key developments:

  • The Mysterious Bank Debt of China’s Developers: Shuli Ren
  • Evergrande’s Hui reduces his participation in Race for Cash for the first time
  • Evergrande chairman stake sale can save time: credit reaction
  • CHINA INSIGHT: Property and politics are the key to the 2022 outlook
  • Kaisa’s proposed bond swap does not encourage holders: HSBC
  • China City tightens Evergrande’s property-for-debt deals: Caixin
  • China’s property-driven economic slowdown shows no signs of ending

Ronshine China Says Funds Sent For Bonds (6:07 PM HK)

Ronshine China said it has remitted $ 140 million to Citicorp International’s designated bond payment account for the payment of outstanding senior notes due on Friday, according to a Hong Kong stock exchange filing.

The dollar bond has an outstanding amount of $ 136.6 million, plus $ 3.58 million in interest.

China Faces More Risks, Policy Support (4:15 p.m. HK)

China’s economy faces multiple risks heading into next year, with a lingering real estate recession and a new variant of the virus possibly disrupting the global recovery.

Economists expect the Chinese authorities to increase fiscal and monetary support next year after a relatively dovish approach for most of this year. The People’s Bank of China last week pointed to an easing bias, while the State Council, China’s cabinet, urged local governments to speed up spending.

Fantasia Gets Assent to Delay Early Redemption of Bonds (4pm HK)

Fantasia received approval from investors to delay early repayment of a 730 million yuan local bond of 7.8% over two years until Nov. 29, 2023, according to a company filing on the Shanghai Stock Exchange. . The prepayment of the principal demanded by the bondholders was originally due Monday, according to a Nov. 25 filing.

China Aoyuan will extend the refund: Jiemian (3:05 pm HK)

China Aoyuan will extend the payment of its 5.6% private onshore bond due December 3, reported, without citing anyone. Aoyuan did not immediately respond for comment when contacted by Bloomberg.

Fantasy, color life unit trading stopped (11am HK)

Trading of shares in Fantasia and its unit Color Life Services Group Co. was halted pending announcements of inside information, according to separate documents. On Friday, Fantasia said a liquidation petition was filed against its main subsidiary Fantasia Investment Holdings Co. on Nov. 24 in connection with an alleged outstanding loan of $ 149 million, according to a filing with the Hong Kong stock exchange.

December Developer Payments Top $ 1.3 Billion (8:15 a.m. HK)

China’s property developers face nearly $ 1.3 billion in bond payments in December, after a month in which investor sentiment toward real estate showed signs of stabilizing despite new signs of liquidity pressure. .

Total payments were $ 2 billion in November, and no defaults have been reported according to data compiled by Bloomberg as of Friday, after multiple instances in October. Still, investor scrutiny persists regarding principal and interest payments as a cash crisis engulfs the real estate industry. At the center of the stage are Evergrande and Kaisa, two of the largest issuers of dollar bonds in the country. One unit of Evergrande and Kaisa have grace periods ending in mid-December on combined coupons of $ 170.9 million.

China Overseas Land to Sell 30% of Kai Tak’s Stake (8:20 a.m. HK)

The China Overseas Land subsidiaries agreed to sell a 30% stake in the Kai Tak project for approximately HK $ 1.35 billion ($ 173 million), according to a Hong Kong Stock Exchange document. The buyer is Haijian I Investment, which is wholly owned by Haijian Fund LP.

A look at Evergrande’s maturity schedule:

Dollar bonds Coupon expiration date Grace period ends Amount

(A million dollars)

TIANHL 13% due 2022 November 6th 6th of December 41.93
TIANHL 13.75% due in 2023 November 6th 6th of December 40.56
EVERRE 7.5% due in 2023 December 28th January 27th 50.43
EVERRE 8.75% due in 2025 December 28th January 27th 204.77

© 2021 Bloomberg

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