Evergrande and friends sink

The news flow in the Chinese development sector is relentlessly poor:

Developer Asks Employees to Take Leave (3:15 p.m. HK)

A local unit of Chinese property developer China South City Holdings Ltd. has asked some employees to take more than four months of leave, China Business News reported, citing a company document. The employees will be paid only 60% of the local minimum salary during that time, the report said.

Aoyuan Proposes WMP Repayment Plans (1:07 p.m. HK)

China Aoyuan Group Ltd. proposed repayment plans for about 6 billion yuan of outstanding wealth management products, Chinese media outlet Yicai reported, without saying where it got the information. Solutions included cash installments or repaying with physical assets such as residential units and car parking spaces.

Guangzhou R&F Coupon in Focus (12:37 p.m. HK)

Some of Guangzhou R&F Properties Co.’s dollar bonds fell for a seventh day, on pace for record lows. The developer is due to pay a 263.2 million yuan coupon by Saturday on a 4 billion yuan local note.

Evergrande NEV Sinks (11:11 a.m. HK)

China Evergrande New Energy Vehicle Group Ltd. fell as much as 22% in Hong Kong, the most in more than two months. Multiple trades comprising 100,000 to 200,000 shares were recorded shortly before 11 a.m. local time. Another unit of the builder, Evergrande Property Services Group Ltd. dropped as much as 6.8% to a fresh record low. HengTen Networks Group Ltd., which Evergrande agreed to dispose its remaining 18% stake of last month, declined 9.3%.

Late Payments Crackdown (9:56 a.m. HK)

China’s government vowed to address the problem of an increase in overdue payments to small businesses in a State Council meeting chaired by Premier Li Keqiang Wednesday.

Small and medium-sized companies’ account receivables have increased rapidly and there have been more incidents of delayed payment this year due to sporadic virus outbreaks and the complex environment both domestically and internationally, the meeting of China’s cabinet said.

Seazen Sinks After Rights Issue (9:37 a.m. HK)

Seazen Group Ltd.’s shares dropped as much as 7.3% in their trading resumption after the developer announced plans to issue as many as 296.2 million rights shares. The offer price represented a 5.6% discount to the theoretical ex-rights price, based on Wednesday’s closing price.

The proceeds are slated be used as additional capital reserve to capture business opportunities in China and for general corporate purposes, the company said in an exchange filing.

Kaisa to Meet Bondholders (8:59 a.m. HK)

Kaisa will meet its offshore bondholders and discuss ways of repaying its loans, the South China Morning Post reported, citing unidentified people. Options presented by some bondholders include an offer to buy new bonds by Kaisa that could be exchanged with equity in some of the developer’s listed units.

Houses and Holes

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