Latest Updates on Chinese Property Sector Companies – Evergrande, Aoyuan, China South City, Fantasia and Zhenro

The latest updates from the Chinese property sector are as follows:

• Bloomberg notes that shares of Evergrande worth ~$1bn appeared in Hong Kong’s Central Clearing and Settlement System in a signal that a sign that its founder Hui Ka Yan might be pledging part of his stake as collateral for loans.
• China Aoyuan said that an extension plan of asset-backed securities (ABS) worth RMB 816mn ($128mn) has been approved with a maturity date of May 20, 2022. Separately, Bloomberg cites financial intelligence agency REDD reporting that Aoyuan defaulted on RMB 66mn ($10mn) of a RMB 78mn ($12.2mn) trust loan on November 12. The trust loan was issued by Aoyuan’s subsidiary Zhuhai Trade Zone Qiheng Logistics and guaranteed by Aoyuan Corp, the onshore arm of the developer.
• China South City said it has paid $10mn in coupons due on November 20.
• Bondholders of Fantasia’s 7.5% 2023s and 7.5% 2023s will hold meetings on Tuesday, November 23 to vote on proposals of authorizing China International Capital Corporation Ltd. (CICC) to start legal proceedings against the developer over bond payments
• Zhenro Properties bought back $4mn of its USD 6.5% 2022s and $1mn of its 10.25% Perps. The price paid for the buybacks were not disclosed.