Sunac China’s shares soared in Hong Kong after the troubled developer said it had satisfied conditions for a long-awaited offshore debt restructuring deal – the first of its kind since the crisis in China’s property sector erupted.
The company’s shares jumped 19 per cent to a two-month high of HK$2.77 on Tuesday, adding HK$2.4 billion (US$310 million) to the developer’s market value. A gauge tracking mainland developers listed in Hong Kong advanced 4.6 per cent, the biggest jump in a week after sliding to an all-time low earlier this month.
The restructuring is a “landmark deal” and “marks a significant milestone for the Chinese property market”, as Sunac is the largest among the property companies seeking to restructure their debt, Sunac’s legal adviser Sidley Austin said in a statement on Tuesday.
Sunac China wins court approval for plan to repay US$10.2 billion to creditors
Sunac China wins court approval for plan to repay US$10.2 billion to creditors
Meanwhile, policymakers in Beijing have been rolling out new stimulus measures in recent weeks to prop up the stricken property sector. These measures include mortgage rates cuts, down-payment reductions and a push for urban infrastructure upgrades. But there has been little reaction in markets, and the sector is yet to show any signs of a reversal.
Regulators are now drafting a white-list of 50 developers eligible for a range of financing, a Bloomberg report said on Monday. The list, which includes both private and state-owned developers, is intended to guide financial institutions as they weigh support for the industry via bank loans, debt and equity financing, the report said.