Evergrande, the Chinese Business Empire on the brink

British_Bulldog

British_Bulldog

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sorry for my novice qns, as i nv buy shares that got suspended.

after e stock suspected from trading then what happen to our shares?
 
Perisher

Perisher

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British_Bulldog said:
sorry for my novice qns, as i nv buy shares that got suspended.

after e stock suspected from trading then what happen to our shares?
Click to expand...
nothing, just suspended lor.
stuck in limbo.
can't sell, can't buy.
 
Shion

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Evergrande misses third round of bond coupon payments, intensifying contagion fears​


https://www.channelnewsasia.com/bus...sses-third-round-bond-coupon-payments-2237491
HONG KONG: China Evergrande Group on Tuesday (Oct 12) missed its third round of bond payments in three weeks, intensifying market fears over contagion involving other property developers as a wall of debt payment obligations come due in the near-term.

Some bondholders said they did not receive coupon payments totalling US$148 million on Evergrande's April 2022, April 2023 and April 2024 notes due by 0400 GMT on Tuesday, following two other payments it missed in September.

That puts investors at risk of large losses at the end of 30-day grace periods as the developer wrestles with more than US$300 billion in liabilities.
Evergrande did not immediately respond to a request for comment.

A total of US$92.3 billion bonds issued by Chinese developers will be due in the next year, Refinitiv data show.

"We see more defaults ahead if the liquidity problem does not improve markedly," said brokerage CGS-CIMB in a note, adding developers with weaker credit ratings are having difficulty refinancing at the moment.

Trading of high-yield bonds remained soft on Tuesday following a rout in the previous session on fears about fast-spreading contagion in the US$5 trillion sector, which accounts for a quarter of the Chinese economy and often is a major factor in policymaking.

Shanghai Stock Exchange data showed the top five losers among exchange-traded bonds in morning deals were all issued by property firms.

Small developers Modern Land and Sinic Holdings were the latest scrambling to delay deadlines, after Evergrande and Fantasia missed their payments since September.

Modern Land's dollar bond due 2023 plunged 25 per cent to 32.250 cents on the dollar, while Sinic's bond due 2022 rose 12 per cent to 19.35 cents, yielding over 1380 per cent.

Modern Land, whose shares dropped over 3 per cent to a new low on Tuesday, had requested bondholders on Monday to delay a repayment due later this month for three months, while Sinic said it would likely default next week.

Aoyuan's bond due 2025 declined 3.5 per cent while Sunac's bond due 2024 lost 2.6 per cent.

On Monday, Fantasia Holdings' unit limited trading in its Shanghai bonds, which is often done ahead of defaults.

BROADER FALLOUT?​

While global attention has been focused on missed dollar debt payments by Chinese property issuers, market indicators suggested that worries about contagion and a slowing economy are spreading further.

Market players say the sell-off, however, appears limited to more riskier bond names.

"The market is trading more rationally now, according to different quality and rating of the companies, rather than selling off on the whole sector," said Michael Wong, director at CP Securities based in Hong Kong.

The cost of insuring against a China sovereign default continued to rise on Tuesday, with five-year credit default swaps - which investors typically use as a hedge against rising risk - hitting its highest point since April 2020.

The option-adjusted spread on the ICE BofA Asian Dollar High Yield Corporate China Issuers Index pulled back to 2,061 basis points on Monday evening U.S. time, just off its previous all-time high of 2,069 basis points on Friday.

Shares of several other property firms, however, fared better as markets bet on more loosening of policies following northeastern city of Harbin's measures to support property developers and their projects.

Top developers Country Garden and Sunac China both rose 2 per cent.

Evergrande's electric vehicles unit jumped over 10 per cent after it vowed to start producing cars next year.
 
Shion

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'Living dead' Evergrande not out of woods despite rushed payment, say analysts​


https://www.straitstimes.com/busine...-of-woods-despite-rushed-payment-say-analysts
HONG KONG (BLOOMBERG) - China Evergrande Group's payment of interest on a US dollar bond is positive news for debt holders, but uncertainties remain on whether the distressed developer can secure cash for other looming repayments, according to analysts.

Shares of the firm advanced as much as 7.8 per cent in Hong Kong after the developer wired US$83.5 million (S$112.5 million) in a bond coupon payment ahead of this weekend's deadline. Still, Evergrande needs to pay interest on another four US dollar notes this year and has a hefty wall of maturing debt next year.

"We have seen this before," said Justin Tang, head of Asian research at United First Partners in Singapore, referring to Evergrande's interest payment. This "does not solve the company's problem, and does not change the fact that it is the living dead."

Here's what other analysts are saying:

Jun Rong Yeap, IG Asia​


"It brings some near-term reprieve ahead of its official default deadline and presents a more positive scenario than what many will have expect"

"The plunge in share price yesterday seems to price in expectations that Evergrande will face difficulty in securing cash ahead with the sales deal fall-through," but the interest payment report "just overturned that narrative for now"

Banny Lam, Ceb International Inv. Corp.​


"It is positive for dollar bond holders. However uncertainties remain if the group can sell assets to pay for the offshore debt. Investors are watching if Evergrande can make agreement with creditors on how to settle the debt"

"The interest payment today only occupies a small portion of total interest payment. Investors are more interested to watch the progress of Evergrande's debt restructuring, especially sales of valuable assets"

Ting Meng, ANZ Banking Group​


The possibility of meeting the next coupon payment with a 30-day grace period due next Friday has risen. "We could see a rebound in the property sector in the short term"

"Evergrande has larger principal repayments next March, which is a critical date to watch closely. It needs to accelerate asset selling to meet that critical deadline"

Omotunde Lawal, Barings​


The relief that Evergrande has averted a default "was in line with government comments" and "buys the group more time to seek further asset sales and solutions for the medium to longer term"

Chang Wei Liang, DBS Bank​


"The bringing forward of debt restructuring is unfavoured by large developers like Evergrande, with valuable offshore assets that can be subject to legal enforcement or with a storied reputation to maintain." They are likely to "keep up their obligations as best as they can to avoid default"

Derek Tay, Kamet Capital Partners​


"Its debt woes will still linger especially since its asset sales efforts to raise funds or deleverage haven't been quite successful, as would-be buyers calling off purchases/negotiations are simply just waiting for better prices."
 
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mrclubbie said:

'Living dead' Evergrande not out of woods despite rushed payment, say analysts​


https://www.straitstimes.com/busine...-of-woods-despite-rushed-payment-say-analysts
HONG KONG (BLOOMBERG) - China Evergrande Group's payment of interest on a US dollar bond is positive news for debt holders, but uncertainties remain on whether the distressed developer can secure cash for other looming repayments, according to analysts.

Shares of the firm advanced as much as 7.8 per cent in Hong Kong after the developer wired US$83.5 million (S$112.5 million) in a bond coupon payment ahead of this weekend's deadline. Still, Evergrande needs to pay interest on another four US dollar notes this year and has a hefty wall of maturing debt next year.

"We have seen this before," said Justin Tang, head of Asian research at United First Partners in Singapore, referring to Evergrande's interest payment. This "does not solve the company's problem, and does not change the fact that it is the living dead."

Here's what other analysts are saying:

Jun Rong Yeap, IG Asia​


"It brings some near-term reprieve ahead of its official default deadline and presents a more positive scenario than what many will have expect"

"The plunge in share price yesterday seems to price in expectations that Evergrande will face difficulty in securing cash ahead with the sales deal fall-through," but the interest payment report "just overturned that narrative for now"

Banny Lam, Ceb International Inv. Corp.​


"It is positive for dollar bond holders. However uncertainties remain if the group can sell assets to pay for the offshore debt. Investors are watching if Evergrande can make agreement with creditors on how to settle the debt"

"The interest payment today only occupies a small portion of total interest payment. Investors are more interested to watch the progress of Evergrande's debt restructuring, especially sales of valuable assets"

Ting Meng, ANZ Banking Group​


The possibility of meeting the next coupon payment with a 30-day grace period due next Friday has risen. "We could see a rebound in the property sector in the short term"

"Evergrande has larger principal repayments next March, which is a critical date to watch closely. It needs to accelerate asset selling to meet that critical deadline"

Omotunde Lawal, Barings​


The relief that Evergrande has averted a default "was in line with government comments" and "buys the group more time to seek further asset sales and solutions for the medium to longer term"

Chang Wei Liang, DBS Bank​


"The bringing forward of debt restructuring is unfavoured by large developers like Evergrande, with valuable offshore assets that can be subject to legal enforcement or with a storied reputation to maintain." They are likely to "keep up their obligations as best as they can to avoid default"

Derek Tay, Kamet Capital Partners​


"Its debt woes will still linger especially since its asset sales efforts to raise funds or deleverage haven't been quite successful, as would-be buyers calling off purchases/negotiations are simply just waiting for better prices."
Click to expand...
IMHO I think Evergrande will be broken up, assets sold to pay off debtors while buildings under construction taken over by others to be completed and delivered to buyers.
 
Shion

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Evergrande, EV unit shares jump after chairman signals business shift​


https://www.straitstimes.com/busine...esumes-work-on-more-than-10-property-projects
HONG KONG (REUTERS) - Shares in China Evergrande Group shot up 4 per cent on Monday (Oct 25) after the embattled property developer announced plans to prioritise growth of its electric vehicles business over its core real estate operations.

China Evergrande New Energy Vehicle Group stock jumped as much as 17 per cent, versus a 0.3 per cent fall in the Heng Seng Index.

Evergrande, reeling under more than US$300 billion (SUS$404.4 billion) in liabilities, last week appeared to avert a costly default with a last-minute bond coupon payment, buying it another week to wrestle with a looming debt crisis.

Evergrande chairman Hui Ka Yan said late on Friday that the company would aim to make its new electric vehicle venture its primary business, instead of property, within 10 years.

Property sales will slow to about 200 billion yuan (S$42 billion) per year by that time, compared to more than 700 billion yuan last year, he added, the state-backed Securities Times reported.

The developer separately said on Sunday it had resumed work on more than 10 projects in six cities including Shenzhen. Many of its projects across the country had been halted due to payments owed to suppliers and contractors.

The company said on Aug 31 that some projects were suspended because of delays in payment to suppliers and contractors and it was negotiating to resume building.

On Sunday, it said in a post on its Wechat account that some of the projects it had resumed work on had entered the interior decoration stage while other buildings had recently finished construction.

Evergrande added that its efforts to guarantee construction would shore up market confidence and included several photos of construction workers on different projects, stamped with the time and date. It has not disclosed how many of its 1,300 real estate projects across China it has had work halted.

Also lifting general confidence, state media outlet Xinhua in an article on Monday said the spillover effect of Chinese real estate companies’ debt default risks to the financial industry would be controllable.

The report follows comments from senior officials including Vice Premier Liu He and central bank governor Yi Gang last week, who also said property companies were facing debt default issues due to poor management and a failure to adjust to market changes.
 
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Evergrande's next bond deadline nears with contagion risk rising​


https://www.businesstimes.com.sg/re...ond-deadline-nears-with-contagion-risk-rising
[HONG KONG] China Evergrande Group's next bond payment deadline is fast approaching as investors scrutinise the developer for clues on the severity of a cash crunch that Is eroding confidence in other highly indebted peers.

The 30-day grace period on Evergrande's US$45.2 million coupon payment that was initially due Sept 29 is set to end on Friday (Oct 29). The closely-watched deadline comes amid a sell-off in Chinese junk bonds that was paced on Thursday (Oct 28) by Kaisa Group Holdings. one of the property sector's largest issuers of US dollar debt.

Evergrande surprised some investors last week by paying another overdue coupon at the tail-end of the grace period. The company's US dollar notes remain at distressed levels as creditors brace for an eventual debt restructuring that could rank among the largest ever in China.

Authorities in Beijing have urged founder Hui Ka Yan to help repay Evergrande's obligations with his personal wealth, but his known fortune represents just a fraction of the company's more than US$300 billion in liabilities.

Speculation about a default has been swirling for months, stoking credit-market contagion among other cash-strapped developers and eroding confidence in a Chinese real estate market that by some measures accounts for more than a quarter of the economy.

A payment would buy more time for Evergrande as it tries to raise funds through asset sales. A delinquency could trigger cross-default clauses on the firm's other US dollar debt and allow creditors to act to protect their interests. It may also make it harder for Evergrande to free up cash by selling assets.

Companies in default are typically required to get approval from creditors on future asset sales. Bondholders may choose to file a bankruptcy petition, for instance. The firm has already hired advisers, and Chinese authorities have begun laying the groundwork for a potential restructuring, assembling accounting and legal experts to examine the finances of the group.

Evergrande has a host of upcoming coupon deadlines. It is late on interest payments for at least two other notes and has another four due till the end of the year. Its next major maturity is on a US$2 billion YS dollar bond due March.

BLOOMBERG
 
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Evergrande pays overdue interest and again dodges default​


https://www.straitstimes.com/busine...ays-overdue-interest-and-again-dodges-default
NEW YORK (BLOOMBERG) - Some China Evergrande Group bondholders received an overdue interest payment shortly before the expiry of a grace period, buying more time for the debt-stricken property developer as it tries to raise cash through asset sales.

Certain holders of the 9.5 per cent dollar note maturing in 2024 received a notification that they had been paid on Thursday (Oct 28), according to people with knowledge of the situation. Evergrande had skipped an interest payment due Sept 29, starting the clock on a 30-day grace period before investors could declare a default.

It is the second time this month that the property developer, teetering with US$300 billion (S$403 billion) in debt, has avoided default.

The latest payment to international bondholders comes amid a sell-off in Chinese junk bonds that was paced on Thursday by Kaisa Group Holdings, one of the property sector's largest issuers of dollar debt.

Evergrande pulled back from the brink of default last week by meeting another delayed coupon before that grace period ended. While that payment surprised some investors, the firm's US dollar notes remain at distressed levels as creditors brace for an eventual debt restructuring that could rank among the largest ever in China.

Advisers to Evergrande and its bondholders earlier this week signed non-disclosure agreements in preparation for potential talks about managing developer's debt load, Bloomberg earlier reported. The ad hoc bondholder group's advisers are seeking to exchange information with the company in what's often a first step toward negotiations for an overall restructuring deal.

The payment, earlier reported by The New York Times, buys more time for Evergrande as it tries to raise funds through asset sales. Chinese authorities have already begun laying the groundwork for a potential restructuring, assembling accounting and legal experts to examine the finances of the group.

Authorities have told Evergrande's billionaire founder Hui Ka Yan to use his personal wealth to alleviate the property giant's debt woes. The directive adds to signs that Beijing is reluctant to orchestrate a government rescue even as crisis spreads to other developers, sours sentiment in the real estate market and threatens to roil the world's second-largest economy. A top Chinese regulator this week called on companies to make "active preparations" to meet payments on their offshore bonds.

The loan for which a Hui home in Hong Kong has been pledged as collateral will be used to pay a US$260 million bond that Evergrande has guaranteed, reported HKO1 on Friday.
 
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Cash-strapped Evergrande raises US$144m before payment deadline​


https://www.channelnewsasia.com/bus...grande-raises-us144m-payment-deadline-2301341
BEIJING: Crisis-hit property developer Evergrande has managed to raise around S$144 million by slashing its stake in an internet company, days before a looming debt interest payment deadline.

Evergrande sold a 5.7 per cent stake totalling HK$1.12 billion (US$144 million) in HengTen Networks Group in three separate transactions from last Thursday (Nov 4), Hong Kong stock exchange filings showed.

The indebted property developer faces a Wednesday deadline for an overdue US$148 million offshore bond coupon payment it initially missed last month.

The crisis at one of China's biggest property developers has hammered investor sentiment, rattled the key real estate market and fuelled fears of a spillover into the wider economy.

Bogged down in a sea of debt worth more than US$300 billion, Evergrande has been trying to dispose of its assets to raise cash.

But some offshore bond holders said they had not received payments of over US$80 million that were due Saturday, Bloomberg reported.

The HengTen sale reduced Evergrande's stake in the internet services firm from 26.55 per cent to 20.82 per cent, according to the filings.

That leaves Tencent as the biggest remaining shareholder, with an almost 24 per cent stake.

Evergrande was plunged into crisis after Beijing began clamping down on the country's colossal property sector last year, a move that has prompted rare public anger and protests from anxious homebuyers, suppliers and investors.

In October, Evergrande managed to avert default twice after making overdue interest payments to offshore bond holders.

In a bid to shore up investor confidence, it recently announced that it delivered over 57,000 properties to buyers between July and October.

But a planned deal to sell a US$2.6 billion stake in its property arm to a Hong Kong developer fell through last month, sending shares tumbling as it resumed trading on the Hong Kong Stock Exchange after a 17-day suspension.
 
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