Chinese developer Shimao plans to use own funds to pay onshore bonds
Reuters
Published Dec 27, 2021 10:35PM ET
HONG KONG (Reuters) - Chinese developer Shimao Group's flagship unit said it plans to use its own capital to make onshore bond payments due in the next three months, and it is in talks to sell its commercial and hotel assets.
Shanghai Shimao Co also said it will be difficult to meet its 38 billion yuan ($5.96 billion) full-year sales target, as sales in the first 11 months were 28.2 billion yuan.
The firm published the comments made to investors in a filing on Monday.
Shimao saw sharp falls in its shares and debt this month, triggered by worries over an asset sale and cancelled apartment deals, as well as downgrades by rating agencies on increased financing risks.
Shanghai Shimao also caused further worries when it said earlier it had sold its property management business to sister company Shimao Services for 1.7 billion yuan ($267 million), at a valuation some analysts said was higher than market average.
The firm said in the Monday filing the proceed is for developing and operating commercial complex, not repaying debt.
Separately, Shimao Services - the group's property management arm - said in a filing on Friday it is operating steadily, and it will not conduct any major assets disposal or acquisition with parent company in next six months.
Shares of Shimao Group and Shimao Services, both listed in Hong Kong, rose over 2% on Tuesday. Shanghai Shimao dropped 2%.
Shimao Group has told investors in November its sales this year would be around 290 billion yuan due to a national credit tightening, and it would consider selling come commercial and hotel assets if prices were good.
($1 = 6.3721 Chinese yuan renminbi)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.