China developer Shimao Group's shares, bonds plunge after missed loan payment (updated)

Shimao Services Holdings

07/01/2022 02:50

(Recasts, adds share, bond movements and trading suspensions)
    HONG KONG/SHANGHAI, Jan 7 (Reuters) - Shares of Chinese
developer Shimao Group Holdings slumped on Friday and trading of
some its key unit's bonds was paused after the company defaulted
on a trust loan payment, underscoring continued stress in
China's property sector. 
    Shimao's Hong Kong shares  0813.HK  fell more than 18% after
trading opened on Friday, while three Shanghai exchange-traded
bonds issued by its unit Shanghai Shimao Co  600823.SS  tumbled
more than 20%, triggering trading pauses over what the Shanghai
Stock Exchange said was "abnormal fluctuations". 
    Three additional Shanghai Shimao bonds fell between 13% and
14%, exchange data showed. The six bonds were last quoted at
distressed levels of 40%-60% off their face value. 
    The falls come after a trust company, China Credit Trust Co,
said on Thursday that Shimao Group defaulted on a loan after
missing a 645 million yuan ($101.10 million) payment.
 urn:newsml:reuters.com:*:nL1N2TM0E1 
    On Friday, another Shimao unit, Shanghai Shimao
Construction, said in a filing that it is in talks with China
Credit Trust to resolve the outstanding payment, and that the 
missed payment will not accelerate payment requests in the open
bond market. 

    ($1 = 6.3797 yuan)

 (Reporting by Clare Jim in Hong Kong and Andrew Galbraith in
Shanghai; Editing by Christian Schmollinger and Edwina Gibbs)
 ((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters
Messaging: clare.jim.thomsonreuters.com@reuters.net))