Saturday, November 30, 2024
24 C
Brunei Town

Latest

Sunac plummets in Hong Kong stock trading return

HONG KONG (AFP) – Property giant Sunac China suffered a record plunge in Hong Kong trading yesterday after a year-long suspension, in the latest blow to China’s beleaguered real estate developers.

The firm’s stocks collapsed as much as 59 per cent on its first day of trading on the Hang Seng Index, after being suspended on April 1 last year.

The drop has revived concerns about China’s debt-plagued real estate developers and a hobbling housing market recovery.

Sunac joined the growing list of crumbling developers in May last year when it said it had missed a USD29.5 million interest payment and warned of more defaults.

Trading in the firm was suspended after it missed a deadline in March last year to publish its annual results.

Sunac China Holdings’ logo at an exhibition in Hangzhou, China. PHOTO: SOUTH CHINA MORNING POST

But the restriction was lifted yesterday after Sunac met exchange requirements by filing the overdue earnings figures.

Sunac proposed plans to restructure debt worth USD9.1 billion in December that included converting up to USD4 billion of offshore liabilities into ordinary shares or equity-linked instruments.

The rest of the debt was to be swapped for new dollar-denominated bonds with maturities ranging from two to eight years, with no interest payments for the first two years, according to a filing with the Hong Kong stock exchange.

In March, the developer announced it had reached an agreement with a group of creditors but analysts were sceptical about the plan, saying Sunac would struggle to win approval from offshore creditors.

Since 2020 Beijing, has cracked down on excessive debt in the property sector, leaving major players such as Evergrande and Sunac struggling to make payments and forcing them to renegotiate with creditors as they teetered on the edge of bankruptcy.

spot_img

Related News

spot_img