China property bonds score strong weekly bounce, Evergrande misses out

China Ruyi Holdings

19/11/2021 19:10

LONDON, Nov 19 (Reuters) - Chinese property firms saw their
battered bonds cement a strongly weekly bounce on Friday,
although there was one notable absentee from the rally: China
Evergrande Group.
    A flurry of asset sales and share placings, including some
from Evergrande itself, has sparked hopes this week that the
heavily-indebted sector will be able to avoid a full-blown
crisis and finally stabilise.  urn:newsml:reuters.com:*:nL1N2S903H urn:newsml:reuters.com:*:nL4N2SA3A1 
    Friday's gainers included China's top property developer
Country Garden  2007.HK   6098.HK , whose bonds were nearly back
to par, or 100 cents on the dollar, having tumbled to around 80
cents last week in a sector-wide slide.  XS175011846=1M  
    Shimao  0813.HK  was also a notable rebounder. Its bonds
completed a yo-yo back up to 90 cents having plunged to around
70 last week in a breakneck fall capped when S&P Global stripped
it of its prized investment grade credit rating.  urn:newsml:reuters.com:*:nB9N2QB02I
    Market watchers put the rebound down to relief that firms
have been able to raise money via share placing and asset sales
this week, even if they have had to offer deep discounts to get
the deals done. 
    Country Garden Services Holdings  6098.HK , the property
services unit of China's top developer, raised $1 billion on
Thursday from share placings, two sources told Reuters.
 urn:newsml:reuters.com:*:nL1N2S90AN
    Sunac China  1918.HK , among the top four developers in the
country, raised a total of $949.70 million, while Evergrande
also struck a deal to sell its entire stake in streaming
services firm HengTen  0136.HK  for HK$2.13 billion ($273.5
million).  urn:newsml:reuters.com:*:nL1N2S903H
    Despite the gains elsewhere, though, Evergrande's bonds have
remained rooted at between 23 and 29 cents on the dollar this
week - a 71%-77% mark down from their value back in May when the
Chinese property sector's troubles first began to snowball.
    S&P cautioned this week that Evergande, the world's most
indebted developer with around $19 billion of international
market bonds and $300 billion of liabilities altogether, was
still "highly likely" to default as it has $3.5 billion to repay
in March and April next year alone.  urn:newsml:reuters.com:*:nP8N2PH00G

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China property bonds rally    https://tmsnrt.rs/30PxFFY
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 (Reporting by Marc Jones;
Editing by Andrew Cawthorne)
 ((marc.jones@thomsonreuters.com; +44 (0)20 7513 4042; Reuters
Messaging: marc.jones.thomsonreuters.com@reuters.net  Twitter
@marcjonesrtrs))