China Evergrande deadline on bond repayment vote looms, Shimao speeding up asset sales
|The worst is far from over for the Chinese troubled property sector, as investors remain wary ahead of the deadline for bondholders to vote on property-giant Evergrande Group’s plan to delay an option for early repayment on one of its yuan-denominated bonds.
According to Bloomberg, “an online meeting held by the property developer’s onshore unit Hengda Real Estate for holders of the note is due to conclude later Monday. The bond is its 4.5 billion yuan ($706 million) 6.98% security due 2023, which has a Jan. 8 put option.”
Separately, officials in Guangdong province reportedly set up a meeting between distressed developers and state-owned property firms. Developer Shimao Group has meanwhile commissioned agents in Hong Kong to speed up disposal of assets amid a missed loan payment, Caixin reported.
Market reaction
Amid a cautious mood, in light of the recent bond market rout, the S&P 500 futures are losing 0.08% on the day while AUD/USD’s rebound remains capped by 0.7200.
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