(Bloomberg) — Chinese property stocks gained after a report that state-run banks in a city in Shandong province have cut the minimum down payment ratio for first-time home buyers, in the first such move in the country to boost housing demand.
Goldman Sachs Group Inc. analysts said China’s high-yield dollar bond market will remain difficult through April if the increased pace of maturities over the next two months corresponds with more firms proposing bond exchanges.
China’s troubled developers have shown more signs of strains this week, as Yango Group Co., one of the 20 largest builders, failed to make two dollar-bond interest payments.
Key Developments:
- China City Takes Leading Step to Boost Home Demand: Reports
- China Builders Miss More Deadlines as Yango Fails to Pay Coupons
- Exchange Offers to Keep Pressure on China Builders’ Bonds: GS
- Greentown China Sells Additional $150m 4.7% Notes Due 2025
China Junk Dollar Bonds Erase Early Drop (10:58 a.m. HK)
Chinese high-yield dollar bonds gained at least 1 cent on the dollar following initial weakness Friday, according to credit traders, as the market seeks its first gain of the week.
Ronshine China Holdings Ltd.’s bonds continued to rebound after recent declines, with its 10.5% note due March 1 rising 9.9 cents to 88.9 cents, according to Bloomberg-compiled data as of 10:45 a.m. in Hong Kong.
China Builders Miss More Deadlines as Yango Fails to Pay Coupons (9:22 a.m. HK)
Yango Group Co., a Shanghai-based developer that operates in more than 100 Chinese cities, hasn’t made a combined $27.3 million of interest payments initially due Jan. 15 by a 30-day grace period, according to a Shenzhen stock exchange filing.
The company, whose 2021 contracted sales were the 19th-highest according to China Real Estate Information Corp., said it is facing a temporary cash flow issue and plans to hold a bondholder meeting.
China City Takes Leading Step to Boost Home Demand, Reports Say (8:58 a.m. HK)
Major Chinese banks in the eastern city of Heze have cut mortgage down payments for some home buyers, the first such move in the country to boost flagging housing demand, local media reported.
The Big Four state-run lenders — Bank of China Ltd., Agricultural Bank of China Ltd., Industrial & Commercial Bank of China Ltd. and China Construction Bank Corp. — lowered the down-payment ratio for first-time home buyers in the city of 8.8 million in Shandong province to 20% from 30%, according to the reports.
Sino Land’s Valuation ‘Depressed’ on Bearish H.K. Outlook, Citi Says (8:48 a.m. HK)
Sino Land Co.’s valuation remains “depressed” on weak home prices and a bearish outlook for Hong Kong’s residential segment, Citigroup Inc. analysts said.
The developer faces a dilemma over its HK$39 billion ($5 billion) net cash between falling returns from deposits and higher risk investment, analysts including Ken Yeung wrote in a report.
Greentown China Sells Additional $150 million 4.7% Notes Due 2025 (6:30 a.m. HK)
Additional notes yield 5.9% and will be consolidated and form a single series with the $300 million 4.7% bond due 2025 issued in October 2020.
Proceeds will be used to refinance existing debt. The deal comes after Greentown China sold a $400 million 3-year green bond in January.
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