In the evening of Wednesday (January 4), China announced that in order to promote the overall management of offshore debt, it will suspend the payment of six US dollar debt and become China's first default housing company in 2023.
The First Financial reported that two of them expired from 2023, and one expired from 2024 to 2027, with the ticket rate between 5.55%and 6.75%.According to the data of Wind (Wind), the six dollar bonds currently have a total of about 2.65 billion US dollars (about S $ 3.55 billion); the two USD bonds expired in 2023 expired in March and July, respectively.
China announced in Times that as of January 4, it had not paid 6.6%of the priority notes due in 2023 and the interest of 5.55%of the priority notes due in 2024, and two priority priorityThe width period of the bills expired on December 30, 2022 and January 3, 2023.
Times China said that failure to pay for payments may cause the holders of two US dollar bonds to increase repayment. If this happens, it will give other creditors to demand the right to repay.
Bloomberg reported that in the previous announcement, Times China said that CICC has been hired as a financial adviser. Shengde was used as a legal adviser to talk to foreign investors and cooperate to discuss feasible solutions.
In the era, China's default highlights the continuous aid measures of the Chinese government or exacerbated the polarization of real estate companies.China's decision -making level is reported to increase support for housing companies to avoid risk of hard landing in the industry as a whole.However, Bloomberg reported earlier that China ’s regulatory requires promoting the support plan for high -quality housing enterprises' asset liabilities, and implemented specific measures.This shows that not all real estate companies have been treated equally.
Times China Holdings's contract sales last year ranked 51st in China.Due to weakening liquidity and limited financing channels, the pressure of debt repayment has been faced in the past few months.
