Home News Country Garden Receives Approval for Bond Repayment Extension

Country Garden Receives Approval for Bond Repayment Extension

494
0

Shares of Country Garden Holdings have seen a rise following reports that the indebted Chinese developer has received approval from creditors to extend repayments on six onshore bonds. By midday, the property giant’s shares had increased by 4.9%, helping to lift other real-estate stocks as well.

In addition to Country Garden Holdings, China Evergrande Group saw a rise of 14% and Shimao Group climbed 8.1%. These gains contributed to the broader Hang Seng Index recovering from its early losses.

According to sources familiar with the matter, Country Garden’s creditors approved the extension of repayments on six out of eight onshore bonds for a period of three years. This news comes amidst the release of China’s latest credit data, which showed higher than expected new bank loans in August. This suggests that Beijing’s stimulus measures have been effective.

Larry Hu, Macquarie’s chief China economist, commented on the situation, stating that the acceleration is likely to continue in September due to special government bond issuance. He also anticipates further policy easing based on historical experience.

Earlier this month, major Chinese cities such as Beijing and Shanghai relaxed mortgage requirements for certain home buyers, making it easier to purchase properties. This round of property easing measures has the potential to boost new home sales in large cities, according to Nomura economist Ting Lu.

However, there are concerns about housing demand in lower-tier cities, as it is expected that hot money will predominantly flow towards megacities.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

16  +    =  25