(Bloomberg) — Country Garden Services Holdings Co. tumbled as much as 17% in Hong Kong Friday, a day after the Chinese property management firm announced a $1 billion share placement amid an industrywide liquidity crunch.
The slump comes as the nation’s developers scramble to raise cash. A unit of Chinese developer Yango Group Co. has won bondholder approval to issue new debt to swap for three maturing dollar bonds, effectively allowing it to delay upcoming repayments and avoid a default.
China Evergrande Group is giving incentives to property agents to sell more flats at one of its Hong Kong projects to help it pay commissions owed to them, the South China Morning Post reported, in the latest sign of the company’s cash woes.
Key Developments:
- Yango Group Gets Bondholder Approval For Exchange Offer
- Evergrande Asks HK Agents to Sell More Flats for Fees Due: SCMP
- Evergrande Highly Likely to Default as Debt Pressure Builds: S&P
- China’s Housing Market to Contract But Not Crash, Barclays Says
- China’s Embattled Developers Rush to Raise $2 Billion in One Day
- Country Garden Services to Raise $1 Billion in Share Placement
- Evergrande to Sell Entire Stake in HengTen for $273 Million
Country Garden Services Tumbles After $1b Placement (11:18 a.m. HK)
Country Garden Services slumped as much as 17% in Hong Kong trade, a day after it said it is looking to raise HK$8 billion ($1.03 billion) through a share sale, the latest Chinese real estate firm to tap equity markets amid a liquidity crunch engulfing the sector. Its shares were trading around the HK$51 level late morning, after the company confirmed placement pricing at HK$53.35 per share Thursday.
Zhongliang Delivers Bond Payment (8:15 a.m. HK)
Zhongliang Holdings Group Co. said it has remitted funds to the trustee for repayment of the outstanding principal amount and accrued interest of a dollar bond due this month, according to a Hong Kong stock exchange filing.
Evergrande Asks HK Agents to Sell More Flats (7:56 a.m. HK)
China Evergrande Group is offering to pay outstanding commission fees owed on two flats for every additional one of similar value that agents sell at one of its Hong Kong projects, the South China Morning Post reported, citing notes from one of a series of meetings between the developer and property agencies.
Evergrande attributed the payment delay to its cash flow problems, saying that the project’s financing structure also “made it impossible to take a large amount of funds to pay commissions.”
Yango Gets Nod on Debt Exchange (7:36 a.m. HK)
A unit of Yango Group Co. announced that bondholders approved its offer to exchange three of its dollar bonds, according to a Thursday filing to the Hong Kong stock exchange.
The developer will issue $669.9 million of new notes due in September to replace the existing three bonds. Yango Justice International Ltd. proposed the debt swap on Nov. 1 after seeing “enormous pressure” on short-term liquidity, saying then that if support fell short the company “may not be able to repay” existing notes.
A look at Evergrande’s maturity schedule:
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