Chinese property developer Shimao Group Holdings’ debt troubles have deepened concerns over the Asian superpower’s property market and any potential spillover of the cash crunch further afield.
The Shanghai Stock Exchange suspended trading on several of Shimao's bonds on Friday (7 January), a day after the developer's failure to repay a loan sent its shares tumbling. Three sources close to the matter told Reuters that Shimao Group unit Shimao Construction has asked for extensions on maturities for two asset-backed securities due this month worth 1.17bn yuan ($183.5m). Chinese policymakers faced with 'moral dilemma' to avoid property crisis contagion According to these sources, the proposals would see the company repay 10% of the principal in January, and then 5% each mont...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
