(Bloomberg) — The 100 biggest companies in China’s debt-ridden property industry suffered a drop in sales last year as they face mounting bills to pay in January and shrinking options to raise necessary funds.
The industry will need to find at least $197 billion to cover maturing bonds, coupons, trust products and deferred wages to millions of migrant workers, Bloomberg calculations and analyst estimates show.
China Evergrande Group said a demolition order from the local government in Hainan province affects 39 buildings and has no impact on the rest of the development. Property firm shares dropped Monday on local media reports of the order.
Key Developments:
- Top China Developers Suffered Sales Drop Last Year, Report Says
- Greentown China to Redeem Two Perpetual Securities Callable 2022
- Hard Landing in Property Market Would Crater China’s Economy
- China May Try to Fill Investment Hole Left by Real Estate Sector
- China Property Bonds Under Technical Pressure in January, April
- China’s Home-Market Slump May Prompt Developers to Raise Equity
- China Developer Shares Slump as Evergrande Halt Sparks Concerns
Evergrande Demolition Order Affects 39 Buildings (8:58 a.m. HK)
Evergrande will proactively communicate and handle the case in accordance with the demolition order from the local government in Hainan province, according to a statement posted on its unit’s WeChat page.
The developer added that the order affects 39 buildings and has no impact on the rest of the development.
China Developers Suffered Sales Drop Last Year, Report Says (8:10 a.m. HK)
The combined home sales for China’s top 100 developers fell 3.5% from a year earlier to 11.08 trillion yuan ($1.7 trillion) in 2021, the Shanghai Securities News reported, citing data from the China Real Estate Information Corp.
Nearly 40% of the top 100 recorded a drop in home sales last year, while more than 80% of the firms that disclosed full-year sales guidance failed to meet their 2021 targets.
Greentown China to Redeem Two Perpetual Securities Callable 2022 (5:37 a.m. HK)
Greentown China plans to redeem two perpetual capital securities callable 2022 in full on Feb. 8 and will cancel the securities after redemption.
The two are $400 million senior perpetual capital securities callable 2022 and $100 million senior perpetual capital securities callable 2022 issued by Champion Sincerity Holdings Ltd., it said in a stock exchange filing.
Sunac Services Ends First Service Stake Purchase (5:57 p.m. HK)
Sunac Services’ agreement to buy a stake in First Service has been terminated as no formal deal has been entered into on or before Dec. 31, Sunac Services said in Hong Kong stock exchange filing.
Evergrande December Sales Fell 99% (12:04 p.m. HK)
Evergrande records a 99% decline in sales year on year, the steepest among 31 listed developers tracked by Citigroup analysts, and a 7% drop versus November.
December sales overall were not as bad as feared, Citi analysts including Griffin Chan write in Sunday note, with weighted average for 31 developers down 26% from a year earlier, and up 23% from November.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
