The Chinese unrecovery is progressing well. COVID is still popping up regularly:
Mobility is slowly lifting:
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Property and trade remain shut:
Property especially is showing no change:
Sunac China, the country’s third largest property developer by sales, is seeking to extend repayment of an onshore bond due June 13 by two years, first reported by Reuters and confirmed by bondholders.
Sunac China plans to pay only the interest on the maturity date on Monday, and it hopes to repay outstanding principle of 1.44 billion yuan in four instalments of 10%, 15%, 20% and 55% of the principal in December 2022, June 2023, December 2023 and June 2024, respectively, according to the bondholders.
The homebuilder has been scrambling to ease its liquidity crunch by extending debt obligations and disposing of assets, after its property sales were hard hit by COVID-19 outbreaks this year and it was unable to raise new financing in the capital market.
Sunac China also plans to provide use its 65% stake in Sunac Sanya Haitang Bay, a villa project in Sanya city, a popular tourist destination in South China’s Hainan province, as pledge collateral to enhance credit of the extension plan, according to the bondholders.
The extension plan hasn’t yet been approved by bondholders and the company is still have discussion with investors, the bondholders said.
China’s 26 major machinery manufacturers sold a total of 20,624 units of excavators in May, sliding 24.2% from a year earlier, according to the China Construction Machinery Association. Excavator sales are often considered a barometer of China’s economy.
In breakdown, they sold 12,179 units of excavators in the domestic market, falling 44.8% from a year ago, and sold 8,445 excavators overseas, rising 63.9% on year, said the association.
In the first five months of the year, their excavator sales reached 122,33 units, sliding 39.1% from the same period last year, with 80,097 units sold domestically, down 54.7%, and 42,236 units sold overseas, surging 75.7%, showed the data.
Yada, yada, yada. Unrecovery on track.