FacebookInstagramTwitterContact

 

BORNEO HOUSING AGENCY: Shop House in Seria Town • Industrial Warehouse in Menglait, Gadong for Rent • Shop house in Gadong (Ground Floor) for Rent • Industrial Shops in Bunut for Sale • Land in Jerudong for Sale • • Shop house in Kiarong for Sale (B$380.00) • TEL: +6738732975           >>           Private Company Urgently Need Houses & Flats for Rent in Bandar Seri Begawan, Kindly Contact the ff. nos. for further information: +673 222 0178/+673 873 2975           >>           Buoy uses AI and machine learning to keep your water bills low           >>           Hackers stole data from 57 million Uber riders, drivers: CEO           >>           Obec abandons half-completed school project           >>           Berkenan berangkat ke Majlis Doa Selamat dan Kesyukuran           >>           Menerima mengadap Ketua Delegasi Simposium Tekstil Tradisional ASEAN           >>           The View's Meghan Mccain And Ben Domenech Are Married           >>           Dikir Maulud peringati kelahiran Junjungan Besar           >>           Beyond Stupid: Florida Court Declares It’s ILLEGAL To Grow Food In Your Own Front Yard           >>           Want To Be Self-Reliant Without Leaving The Comforts Of The City? Check Out These 10 Ways To Make It Possible           >>           KKBS adakan Majlis Dikir Syarafil Anam           >>          

 

SHARE THIS ARTICLE




REACH US


GENERAL INQUIRY

[email protected]

 

ADVERTISING

[email protected]

 

PRESS RELEASE

[email protected]

 

HOTLINE

+673 222-0178 [Office Hour]

+673 223-6740 [Fax]

 



Upcoming Events


Brunei Salebration
November 23rd, 2017 | 09:00 AM


School Camping Holiday
December 1st, 2017 | 00:00 AM


Creative Arts Festival
December 1st, 2017 | 00:00 AM


JERUDONG PARK SCHOOL HOLIDAY SPECIAL
December 1st, 2017 | 00:00 AM


THE BRUNEI ISLAMIC TOUR EXPERIENCE
December 1st, 2017 | 00:00 AM





Prayer Times


The prayer times for Brunei-Muara and Temburong districts. For Tutong add 1 minute and for Belait add 3 minutes.


Imsak

: 04:38AM

Subuh

: 04:48AM

Syuruk

: 06:10AM

Doha

: 06:34AM

Zohor

: 12:07PM

Asar

: 03:29PM

Maghrib

: 06:03PM

Isyak

: 07:16PM

 



The Business Directory


 

 



World Business


  Home > World Business


China Throws Lifeline To Builders Facing Record Wall Of Debt


Photographer: Qilai Shen/Bloomberg

 


 November 15th, 2017  |  10:32 AM  |   515 views

CHINA

 

Chinese developers facing a looming wall of debt repayments have been thrown a lifeline by regulators easing access to offshore financing. That won’t solve all their problems.

 

The nation reported the deepest slowdown in new home sales in almost three years on Tuesday, as local authorities have rolled out curbs to cool runaway prices and President Xi Jinping urges citizens to end their speculation on housing.

 

Amid the slowdown, developers still face restrictions on borrowing in the local bond market, rising costs for domestic financing -- including shadow loans -- and a record $30 billion in onshore and offshore bonds coming due in 2018. That figure balloons to $71 billion if put options are exercised, according to Bloomberg-compiled data.

 

“Cooling measures will slow down sales and cash receipts,” said Clement Chong, senior credit analyst in Singapore at NN Investment Partners. “The government is unlikely to loosen these restrictions in the near term.”

 

Home sales, excluding affordable housing, fell 3.4 percent in value in October from a year earlier, according to data released Tuesday.

 

So far this year, offshore bond sales almost tripled while local offerings -- dominant in 2016 -- shrank over 60 percent. That trend looks set to continue, with the National Development and Reform Commission more willing to approve larger quotas for offshore bond deals than earlier in the year, people familiar with the matter said Tuesday. At least eight builders received quotas or had indications from the NDRC that approval is imminent, they said.

Beijing-based Xinyuan Real Estate Co. is marketing a three-year dollar bond on Wednesday with initial price guidance of 9.125 percent area, according to people familiar with the matter, who are not authorized to speak publicly and asked not to be identified, after China South City Holdings Ltd. and Guangzhou R&F Properties Co. priced dollar bonds this week.

 

With the Shanghai Stock Exchange keeping the threshold high for property firms to sell bonds since October 2016, more builders have turned to shadow financing. For one type, trust financing, interest rates have climbed to 9-10 percent from as low as 6 percent last year, according to Christopher Yip, a real estate analyst at S&P Global Ratings.

 

For developers that managed to tap the domestic bond market, the average coupon has climbed to 5.6 percent this quarter, 1.6 percentage points higher than the level in the first three months of 2017, Bloomberg-compiled data show.

 

“The higher funding costs will impact debt serviceability which will ultimately impact their bottom line,” said Yip. “Onshore bank loans are getting more pricey and domestic bonds are largely off limits for builders.”

 

To be sure, Chinese developers have a sizable cash buffer to counter any short-term liquidity squeeze, helped by years of strong sales, according to Pang Ling, a Shanghai-based property analyst at China Real Estate Information Corp. Listed developers had combined cash and equivalents of 1.46 trillion yuan ($220 billion) at the end of June, almost triple the tally three years earlier, Bloomberg-compiled data show.

 

Yet the picture may not be as rosy for small developers as for bigger firms.

 

“Smaller developers who have weaker access to funding will face trouble,” Chong at NN Partners said. “Some of them will exit the industry.”

 


 

Source:
courtesy of BLOOMBERG

by Bloomberg News

 

If you have any stories or news that you would like to share with the global online community, please feel free to share it with us by contacting us directly at [email protected]

 

Related News


2,000 Job, Training Opportunities Offered

 2017-11-22 08:57:31

North Korea Defector Wakes After Being Shot Crossing The DMZ

 2017-11-22 09:06:42

Asian Stocks Surpass 2007 Peak in Global Rally: Markets Wrap

 2017-11-22 09:32:34