Chinese property developers rally in Hong Kong after a major developer said nearly 90% of creditors have agreed its offshore debt restructuring. CIFI Holdings is gaining nearly 5%, Sunac China up more than 3%, Agile Group up more than 2%.
CIFI Holdings has released an update on its offshore debt restructuring progress. As of the deadline for the General Restructuring Support Agreement Fee (November 27, 2024), creditors holding about 87.36% of the total outstanding principal amount of applicable debt (in their capacity as beneficial owners) had officially signed or joined the restructuring support agreement.
The company will continue to work diligently with its advisors and all stakeholders to advance the implementation of the proposed restructuring and it’s striving to swiftly and effectively implement the proposed restructuring through a scheme of arrangement to be conducted in Hong Kong and a consent solicitation, the company said.
BofA Securities said in a note on Thursday that China is expected to further step up policy support for the real estate sector, which could drive outperformance of Chinese property stocks relative to the broader market, however, before new policies are introduced, more weakness in property sales is expected.
China’s property sales are expected to decline by 4% – 6% in 2025, with sales value to drop 8%-10%, it forecasted.
Home prices in first-tier cities are expected to stabilize in the second half of 2025, but it may take longer for home prices in second-tier cities to bottom out, and lower-tier cities may face structural challenges in home transaction, it noted.
