China asked three private property developers to issue bonds this week - sources (updated)

Midea Real Estate Holding

16/05/2022 07:52

(Adds details)
    HONG KONG/BEIJING, May 16 (Reuters) - Three major private
Chinese property developers were asked by authorities to issue
bonds this week to help boost market sentiment, two sources with
direct knowledge of the matter said on Monday.
    The authorities informed Country Garden  2007.HK , Longfor
Group  0960.HK  and Midea Real Estate  3990.HK  about the plan
late last week, the sources said. They declined to be named
because they were not authorised to speak to media.
    The three developers declined to comment.
    Financial intelligence provider REDD first reported about
the plan on Monday. The report also said Chinese banks have been
asked by regulators to buy those bonds.
    China's property sector has been hit by a series of debt
defaults and requests for payment extensions. Many developers
said they have not been getting new credits from banks despite
repeated assurances by policymakers and regulators that they
would help the sector to avoid defaults and would ask banks to
extend loans.
    Financial regulators including the China Securities
Regulatory Commission (CSRC) and the Shenzhen Stock exchange
issued separate statements early this month highlighting the
importance of supporting normal refinancing needs in the sector,
including via corporate bond issuance.
    President Xi Jinping also called for a stable and healthy
real estate market at a late April Politburo meeting.      
    Sources told Reuters last month that regulators have asked
developers to apply for quotas to issue bonds, although some
developers were sceptical that there would be demand for the
bonds in the market.
    "We still have some quota left, but no banks would buy
property bonds right now unless they were ordered by the
authorities," one Hong Kong-listed developer who had problems
meeting debt obligations said. The developer declined to be
identified due to the sensitivity of the issue. 

 (Reporting by Clare Jim in Hong Kong and Shuyan Wang in
Beijing; Editing by Kim Coghill and Edmund Klamann)
 ((clare.jim@thomsonreuters.com;))