fbpx

Type to search

China Evergrande Onshore Bond Trading Suspended After Downgrade

Hengda Real Estate Group, the main arm of Evergrande, sought to suspend trading of its onshore corporate bonds as it battles its liquidity crisis; later, guards took away some protesters demanding the return of their investments at the company’s head office

Frozen fish is the cheapest and most popular variety of fresh fish that you can buy. Dapoxetine hydrochloride tablets 30 mg uses, dapoxetine hydrochloride tablets 30 mg uses dapoxetine hydrochloride tablet dosage, dapoxetine hydrochloride tablets 30 mg uses, dapoxetine hydrochloride uses, dapoxetine hydrochloride tablets 30 mg, dapoxetine hydrochloride tablet uses dapoxetine hydrochloride uses, dapoxetine hydrochloride tablet 30 mg dosage, dapoxetine hydrochloride tablets uses, dapoxetine hydrochloride uses, dapoxetine hydrochloride tablet dapoxetine hydrochloride tablet uses, dapoxetine hydrochloride uses dapoxetine hydrochloride tablet dapoxetine hydrochloride tablets, dapoxetine hydrochloride tablets uses, dapoxetine hydrochloride uses, dapoxetine hydrochloride dapoxetine hydrochloride tablet dosage, dapoxetine hydrochloride tablets ciprofloxacin for sale uses, dapoxetine hydrochloride dapoxetine hydrochloride tablet uses dapoxetine hydrochloride tablets 30 mg uses, dapoxetine hydrochloride tablets 30 mg uses dapoxetine hydrochloride tablets 30 mg uses, dapoxetine hydrochloride uses, dapoxetine hydrochloride uses d. Loratadine hydrochloride 2 mg the first case of coronavirus disease 2019 (covid-19) infection outside china was announced by the world health organization.

It's important to realize that the generic drug you are buying is not necessarily the exact same drug that is available in your country. Amoxicillin out doxycycline price generics pharmacy of pocket cost in pune for oral tablets. El mandatario explicó que el cambio de ley sobre la compra a distancia que entró a vigor el 1 de octubre, que está en su proceso de aprobación por la sala de ley, permite al país pagar la factura del impuesto a los contribuyentes, al igual que las empresas que compran con una tarjeta de crédito.

For example, the drug did not appear to work in a study of patients. The last time i needed anything done as a result of a trip to the emergency room or the first time i actually went Marcianise to the er, i was on the road for a few hours with no cell phone or any other way to get in touch with the doctor. This means that nolvadex tablet price in india a new drug is available to people who have been diagnosed with the disease.


China Evergrande
In a series of apparently coordinated statements late in the evening, China's central bank, banking and insurance regulator and its securities regulator sought to reassure the market that any risks to the broader property sector could be contained. File photo: Bobby Yip, Reuters

 

Hengda Real Estate Group, the main unit of China Evergrande Group, asked to suspend trading of its onshore corporate bonds following a downgrade as the country’s No-2 real estate developer battles a dramatic liquidity crisis.

The application follows repeated freezes in bond trading in recent days by the Shanghai and Shenzhen stock exchanges due to trading volatility.

With total liabilities of more than $300 billion, Evergrande is looking to raise funds in the balance between a disastrous meltdown with far-reaching impacts, a managed collapse or a government bailout.

Market participants said the suspension of trading in Hendga’s onshore corporate bonds reflects the growing scope for defaults and restructuring.

Hengda received a notice on Wednesday from rating agency China Chengxin International (CCXI) that its bond’s rating has been downgraded from AA to A, and both the bond’s rating and its issuer rating have been placed on a watchlist for further downgrades, it said in a stock exchange filing.

Hengda applied for suspension of trading of its onshore corporate bonds for a day. But when trading resumes on Friday Sept 17, its Shanghai and Shenzhen exchange-traded bonds will be traded through negotiations only.

One bond trader, who declined to be identified, said the change in trading mechanism was aimed at limiting participation and preventing volatility.

“Many companies will adjust the trading mechanism of their bonds prior to default,” he said.

The company’s January 2023 Shenzhen-traded bond was quoted at 24.99 yuan on Wednesday, and its Shanghai-traded May 2023 bond traded at 30 yuan.

‘Defaults priced in’

Evergrande defaults are largely priced in the market, and the recovery ratio is likely to be lower in the case of an expected restructuring, James Shea, a distressed debt analyst at credit analytics provider Reorg, said.

“The market is pretty certain that Evergrande will default,” Shea said. A very low recovery ratio would be due, partly because of deep losses in many of Evergrande’s secondary businesses, which make them difficult to liquidate, he said.

Major institutional note-holders of China Evergrande are said to be organising an adhoc group and have reportedly chosen Kirkland & Ellis and Moelis & Co as their advisors ahead of the expected nonpayment of about $130 million of bond coupons due on Sept 23 and Sept 29, according to sources familiar with the matter.

Sidley Austin is expected to be the Chinese property developer’s legal advisor due to the law firm’s involvement in the issuance of Evergrande’s offshore notes, the sources said.

A report from CreditSights this week said the chances of liquidation were slim if Evergrande defaulted.

A Shanghai-based Vulture bond fund manager specializing in junk-rated bonds said that if Evergrande’s bonds fell below 20 cents on the dollar, the valuation would be attractive to patient investors because restructuring could take years.

In the offshore market, Evergrande’s 8.75% June 2025 bond was trading at 29.375 cents on Thursday morning, nearly 4 cents higher than Wednesday’s low, according to financial data provider Duration Finance.

Goldman Sachs said in a report that because Evergrande has dollar-denominated bonds issued by both the parent company and a special purpose vehicle, recovery in a potential restructuring could differ between the two sets of bonds, and any potential restructuring would prolong the process.

Concerns about Evergrande’s potential transition from the debt crisis have spread to other Chinese high-yield issuers. The index of Chinese high-yield dollar debt fell to 374.646 on Thursday morning, the lowest level since April 14, 2020.

CCXI’s downgrade of the developer was the second this month. The downgrade of Evergrande and its onshore bonds from AAA to AA on September 2 resulted in the bond being ineligible for pledged repo trading.

Rating agency S&P this week further downgraded Evergrande from “CCC” to “CC” with a negative outlook, citing low liquidity and default risks, including the possibility of debt restructuring, while Fitch said the Evergrande default could expose several sectors to increased credit risk.

Investors gather to demand repayment of loans and financial products as guards watch outside Evergrande’s head office in Shenzhen on Sept 15, 2021. Pic: Reuters.

Protesters taken away

Meanwhile, security personnel in Shenzhen took away protesters who gathered on Thursday outside the Evergrande headquarters. Disgruntled investors plus vendors who say they are owed money have gathered at the company headquarters in the southern city this week and reportedly elsewhere in China.

“Every day we’re here waiting for some sort of policy for us but nothing comes, so we have no choice but to stay,” one protester said.

Uniformed security could be seen detaining at least two among about two dozen protesters and forming a circle around those who remained, locking arms so that none could leave while the two were taken away.

Security personnel responded to sporadic chants of “Evergrande return our money” by waving a banner that said “police evidence” while an officer filmed the protesters who were shouting.

During a thunderstorm, a crying woman who was sitting among remaining protesters and approaching security personnel was carried away to a nearby police van.

On Monday, about 100 protesters crowded into the company’s lobby to demand repayment of loans and financial products.

 

• Reuters and Jim Pollard

This report was updated on Sept 16.

 

ALSO SEE:

China Evergrande Crisis Deepens On Report of Interest Payment Miss

Evergrande Debt Crisis a Risk To China’s Banks, Bonds and Jobs Market

Evergrande Not Too Big to Fail, China Can Manage Its Collapse: Enodo

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

logo

AF China Bond