China's Property Developers to Feel the Financial Strain as Bond Issuing Plunges
Xu Wei
DATE:  Feb 21 2020
/ SOURCE:  yicai
China's Property Developers to Feel the Financial Strain as Bond Issuing Plunges China's Property Developers to Feel the Financial Strain as Bond Issuing Plunges

(Yicai Global) Feb. 20 -- China's real estate developers will come under greater financial pressure as debt maturities peak this year and financing proves harder because of the impact of the novel coronavirus epidemic.

Debt sales among 95 such firms fell sharply after the Lunar New Year, China Securities Journal reported today, citing incomplete data from China Real Estate Information. Just four bonds were issued totaling CNY7.1 billion (USD1 billion) between Jan. 25 and Feb. 10. That's a 90 percent drop from a year earlier.

Those same companies face total debt repayments of more than CNY33 billion (USD4.7 billion) next month, the Shanghai-based consultancy added. For the whole year, the sum is over CNY500 billion (USD91.3 billion), a 45 percent increase on last year.

The Covid-19 virus epidemic has greatly crimped developers' fundraising efforts this month and it may affect their ability to pay back debts later, CRIC Director Fang Ling told the same newspaper.

Meanwhile, most consumers have cut back on going out and spending money, which has limited sales in the property sector which relies on in-person viewings.

Editor: Emmi Laine

Follow Yicai Global on
Keywords:   Covid-19,real estate