** 17-Jan-2022 World View: Another disastrous day for China's property developers
Yesterday, we described how the bonds for China's largest developer,
Country Garden, were crashing.
Today, there's another Chinese property developer in distress -- Logan
Bonds.
**** Chinese developer bond rout deepens on hidden debt concerns
- Many Chinese developer bonds crashed on Monday (Bloomberg)
From Bloomberg:
Mounting concerns about the transparency of China’s better developers
is forcing bondholders to question the liquidity of firms whose
finances appear sound. More debt would mean more creditors, some of
whom could demand early repayment. There’s also the risk that hidden
liabilities like trust loans, private bonds or high-yield consumer
products receive preferential treatment over money owed to offshore
creditors. China Evergrande Group, Kaisa Group Holdings Ltd and Shimao
Group Holdings Ltd have all faced such obligations.
“Risks across the Chinese property sector are rising, evident from
difficult refinancing conditions for even the most well-regarded
firms,” said Wei Liang Chang, a macro strategist at DBS Bank
Ltd. Greater clarity on the disclosure of liabilities as well as asset
sales are crucial to shore up confidence, he added.
Chinese property firms need to repay or refinance some US$99 billion
of local and offshore bonds this year. Just under half of that is
outstanding dollar debt, Bloomberg-compiled data show.
- Chinese builders need to repay $99 billion this year
https://www.theedgemarkets.com/article/ ... t-concerns
(Bloomberg, 17-Jan-2022)
**** China says tickets for Beijing Winter Olympics will not be sold to general public due to COVID-19
Adding to China's troubles, the spread of Covid is resulting in tens
of millions of people being locked down. Several hours ago, China
annouced that no tickets will be sold to the games, due to the "grave
and complicated situation of the pandemic."
https://www.arirang.com/News/News_View. ... seq=291663
(Arirang, Korea, 17-Jan-2022)