Bond Market News

China Evergrande’s winding-up petition has been pushed to November 7 from the earlier stated September 5, as per the developer’s exchange filing citing the Hong Kong High Court’s announcement. The petition relates to an investor in the company, Top Shine Global’s filing with the court because the developer had not honored a financial obligation of HK$862.5mn ($109.91mn). The company also said that it was actively pushing forward its offshore debt restructuring task with its financial and legal advisors, adding that it “aims to announce a concrete resolution plan that respects the rights of all stakeholders as soon as possible”.

Separately, R&F Properties agreed to sell its Wanda Realm Beijing hotel to Beijing Yingxie Property Investment Co. for RMB 550mn ($79.3mn), according to an exchange filing. The developer is expected to record a loss of ~RMB 6.54mn ($940mn) from the disposal. Net proceeds will be used for repaying its debt. R&F’s dollar bonds due 2023 are trading at roughly 22 cents on the dollar.

Sunac China reported its August contracted sales at RMB 10.8bn ($1.6bn) vs. RMB 45.1bn ($6.5bn) in August 2021, a 76% decline as per Bloomberg. Total contracted sales for the period of January-August 2022 came in at RMB 134.6bn ($19.4bn), down 68% YoY. Sunac’s dollar bonds are trading at 14-16 cents on the dollar.

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