(Bloomberg) — New-home sales in 23 major Chinese cities plunged 33% by area during a five-day national holiday compared with a year earlier, despite policy makers’ pledges of support for the property market.
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Lenders seized control of the property where China Oceanwide Holdings Ltd. planned to develop one of lower Manhattan’s tallest towers after the company failed to make mortgage payments. China-based developers have been struggling overseas as the government restricted international capital flows.
As China’s property sector faces continued stress, Premier Li Keqiang warned about the nation’s employment situation after Beijing and Shanghai tightened virus curbs. A Bloomberg Intelligence index of real-estate stocks fell as much as 4.4% Friday, amid broader market declines. A gauge tracking junk dollar notes fell for the third week in the past four.
Key Developments:
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China Stimulus Fails to Ignite Housing Sales Over Key Holiday
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China Premier Warns of ‘Grave’ Jobs Situation Amid Lockdowns (1)
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China’s Oceanwide Loses $410 Million Manhattan Site to Lenders
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China Property Sector Sees Slower Loan Growth by End March
Guangzhou R&F Gets Nod to Delay Payment (10:53 a.m. HK)
Guangzhou R&F Properties Co. obtained investor approval to effectively delay repaying the majority of a 6.48% 400 million yuan ($60 million) bond that’s puttable Monday, according to a filing to the Shanghai Stock Exchange dated Friday.
Under the new arrangement, the developer will still pay the coupon due for the past year on Monday but reschedule payments for the remainder of the bond originally due in 2024.
New Home Sales Drop Over Holidays (8:19 a.m. HK)
New-home sales in 23 major cities tracked by China Real Estate Information Corp. fell 33% by area, adding to the pain this year, after combined sales at the top 100 developers halved in the first four months.
That’s despite the Politburo making sweeping vows to stimulate the economy and the top policy maker saying it would encourage “real housing demand,” in its clearest message condoning relaxation of property curbs.
Oceanwide Loses Manhattan Site to Lenders (8:15 a.m. HK)
Lenders have seized control of the property where China Oceanwide planned to develop one of lower Manhattan’s tallest towers.
Oceanwide defaulted on a $165 million loan on the project, at 80 South St., in January, leading to the transfer to a receiver as the property’s custodian, according to a filing by the developer’s Hong Kong affiliate. Oceanwide had invested $410 million in the project.
“The borrower has failed to pay all amounts demanded under the notice of default,” Oceanwide reported in the filing. “The company is continuously assessing the legal, financial and operational impacts of the actions to be taken by the initial lender.”
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Source: finance.yahoo.com