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China Vanke expects to see steep losses of about $962mn in H1 2024, of which a significant chunk is expected to come from the second quarter. In Q1, it saw losses of only ~$50mn. It said that investment in some projects have “been over-optimistic”. Some analysts note that the government’s supportive policies have not yet materially seen a sharp uptick in homebuyer demand. As per Bloomberg data, the state-backed developer hasn’t reported a first-half loss since at least 2003. Vanke’s dollar bonds were trading steady with its 3.15% 2025s at 86.3, yielding 22%.
Separately, Guangzhou R&F Properties has received a winding-up petition from a Singapore-based PE fund due to non-repayment of a loan, as per Reuters. The distressed developer is already facing a liquidation suit filed by creditors. The company said that the petition would not have any meaningful impact on its business, and that the hearing will be on September 25. R&F’s dollar bonds issued by Easy Tactic are trading at deeply distressed levels of 3 cents on the dollar.