Friday, January 21

Another bonus coupon payment deadline expires: Evergrande update

China Evergrande Group passed another debt deadline with no signs of payment, after coupon payments are due on Tuesday in two-dollar bills, both with a 30-day grace period before a default can be declared.

Evergrande has focused its attention on delivering homes and paying workers even when debt payments are looming. The embattled developer was labeled defaulter by international rating firms for the first time earlier this month after it failed to pay its obligations on time. Still, the paying agent and transfer agent for the last two bonds is Citibank London Branch, according to a prospectus seen by Bloomberg News. Tuesday was a public holiday in the UK.

Chinese companies cut investment and were reluctant to borrow in the fourth quarter, and small business financing costs soared despite favorable policies, the Beige Book showed. An easier credit environment for the real estate industry in November was reversed this month, according to the report. Evergrande shares rose as much as 7.4% on Wednesday, although they are still down 89% this year.

Key developments:

  • Chinese companies slow investment and are unwilling to borrow: beige book
  • China’s stable economy clouded by property and export prospects
  • Evergrande Faces First Big Post-Default Dollar Bond Coupon Test
  • Evergrande is rushing to restart projects as debt repayments loom
  • Yango’s father is the newest defaulter in China as property problems deepen

Guangzhou R&F Establishes Escrow Account for Dollar Bond Extension (11:43 AM HK)

Guangzhou R&F Properties has opened an escrow account with Citibank to help facilitate the settlement of its proposed tender offer for debt, it says in an exchange filing. The company expects to commit funds of about $ 300 million, comprising funds in the escrow account and cash on hand, prior to the settlement date.

Guangzhou Times 5.1% yuan bonds due 2025 stopped following the increase (9:54 AM HK)

Trading on the bond was halted in Shanghai at 9:30 am after “unusual fluctuations,” the Shanghai Stock Exchange said in a statement. The note rose 24.6% to 72 yuan before the trading disruption, according to prices compiled by Bloomberg. The bonds resumed trading at 10 a.m. M.

China South City makes a coupon payment of $ 18.8 million on a dollar bond (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 for the developer said on Wednesday. The firms transferred the $ 18.8 million interest payment to the trustee for the note, 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 $ 970.5 million due in 2022, according to data compiled by Bloomberg.

Chinese Companies Slow Investment, Not Willing To Borrow: Beige Book (7 AM HK)

Amid a shrinking investment environment, only the retail and manufacturing sectors borrowed more this quarter compared to the previous three months, China Beige Book International said in a report released on Wednesday, as growth in services slowed. it slowed “across the board.”

Additionally, it became more expensive for smaller businesses to borrow, and the gap between interest rates on loans for small and large businesses increased to 2.73 percentage points, the highest level since the survey began in 2012, according to the report.

That’s despite a series of policies aimed at helping smaller businesses, and the central bank is guiding overall credit growth to rebound in November to counter a slowing economy dragged down by a housing recession and sporadic outbreaks of Covid-19. .

China’s Stable Economy Clouded by Real Estate and Export Prospects (5:00 AM HK)

China’s economy expanded at a moderate pace in the final month of the year, supported by better business sentiment, easing inflationary pressures from factories and faster car sales. However, the decline in the real estate sector and the slowdown in external demand are clouding the prospects for the world’s second-largest economy.

That’s the outlook for Bloomberg’s aggregate index of eight early indicators for this month. The overall number was unchanged in December, indicating that the economy is still improving at a steady pace, but there are mixed signals from some of the real-time economic data.

© 2021 Bloomberg

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