Country Garden at over 3-week high on deal to extend onshore bond payment

KWG group

04/09/2023 04:07

** Shares of Chinese property developer Country Garden
 2007.HK  rise as much as 19.1% to HK$1.06, highest since Aug.
10 
    ** Stock set for biggest one-day pct rise since Nov. 24, if
gains hold; biggest pct gainer in Hang Seng Index  .HSI 
    ** Country Garden has won approval from its creditors to
extend payments for an onshore private bond 
    ** The deal with creditors for an extension on onshore debt
payments worth 3.9 billion yuan ($537 million) has brought
Country Garden and China's crisis-ridden property sector some
much-needed respite 
    ** Meanwhile, Beijing and Shanghai ease mortgage rules for
first-time home buyers, boosting property stocks
    ** "This nationwide policy measure marks a significant step
in stimulating the property sector, as top policymakers become
increasingly worried about the collapse of the property sector,
the downward spiral, and a rising number of credit risk events
among major developers and financial institutions since
mid-August" - Nomura
    ** Shares of Longfor  0960.HK , Logan  3380.HK , Guangzhou
R&F Properties  2777.HK , Agile  3383.HK  and KWG  1813.HK 
surge 12.4%-15.4%%  
    ** CSI 300 Real Estate Index  .CSI000952  gains 1.6%,
blue-chip CSI 300 Index  .CSI300  rises 1.4%
    ** Hang Seng Mainland Properties Index  .HSMPI  jumps 8.9%,
Hang Seng Index  .HSI  rises 1.3%
    
  

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))