[ad_1]
Chinese real estate developers are concerned about the huge number of declining numbers from international lending agencies this year, as the collapse of Evergrande raises concerns about China’s economic health.
The decline comes after Beijing launched a strategy last year to cool the hot housing market and the financial crisis that threatens the spread of reliable lenders.
Moody’s, Fitch and S&P reduced China’s development exports 43, 54 and 30 times, respectively, in 2021, compared to 6, 12 and 11 in 2020, increasing their pressure to repay maritime debt during housing shortages.
Analysis of the Financial Times’ data on high-risk lenders shows that despite the fact that riskier producers were significantly lower last year, the votes of high-income companies have not changed. BBB- and higher loans are more expensive, while the lower ones are more productive.
Encouraged by the rapid rise of cities in China, home-to-house builders are the majority of domestic and foreign lenders, and in Asia they make up the bulk of the region. $ 400bn market for high yields. He became alarmed after the government of Chinese President Xi Jinping decided to use his power for fear of an economic downturn in the economy.
Evergrande, the world’s largest debtor with more than $ 300bn in debt, began appearing this summer as he struggled to raise enough money to pay off his debts and secure his vast real estate empire. Missed several foreign payments from the end of September and was eventually announced that he had not been nominated by Fitch this month.
The economic crisis at Evergrande, which is organizing the negotiations, quickly spread to other manufacturers. Kaisa, another major market lender in the world, failed to repay a $ 400m loan this month. Other developers of Fantasia and China Modern Land have also changed in recent months.
Kaisa this week said in consultation with those who have a bond on the restructuring plan and that he hired as a banking adviser Houlihan Lokey, who also works at Evergrande.
S&P lowered its shares on the Evergrande bond from B + in January to CC by September, before being fired at the company’s request last week.
In early December, Fitch dismissed Evergrande as a “ban on fidelity” after there was no sign of payment on the bonds he had with depositors after the expiration of the 30-day grace period. Evergrande did not disclose the details.
Weaknesses in all developed sectors have focused on China’s economy, which has been struggling this year following a sharp recurrence since the epidemic began in early 2020. Land acquisition has dropped and new house prices have fallen month on month. for the past three months.
The concerns of the region have also brought markets for the highest yields in Asia. Effective yields for lenders with high Chinese yields jumped in November to about 30 percent, their largest share since the global financial crisis. They are currently trading at 22 percent, according to the ICE index, indicating that market fears are low.
However the problem still lies with the ever-increasing potential of reliable borrowers. Shimao, an undisclosed developer, was placed this week by the S&P at a lower B + level “reducing revenue”. The company’s bond, which grows next year, dropped to 59 cents a dollar in December and sells for about 65 cents.
Researchers in Citi said last week that the company was “trying to boost confidence by reducing banking risk, boosting savings, disposing of less important assets and raising money through new divisions”.
But he added that as manufacturers “have left the growing process as a means of survival, the decline seems unstoppable due to Shimao’s business and profitability”.
[ad_2]
Source link
