Shimao Group Holdings Ltd in Shanghai, China, Saturday, January 8, 2022. An old couple passing by the sign in front of the Shimao Tower developed by.
Qilai Shen | Bloomberg | Getty Images
Beijing — China Real Estate Developer Shimao Group Holdings Pushed back reports of default and prime real estate sales on Tuesday.
Shimao is one of the healthier developers in China. However, the company’s Hong Kong-listed and mainland-listed stocks and bonds have plummeted in recent months following warnings of under-sales. The Volatility arises amid widespread concerns about the capabilities of China’s real estate industry Repay a huge debt.
In a filing on Tuesday, the Hong Kong-listed Shimao Group responded first to media coverage of the sale of a real estate project.
“Certain media reports claim that the group is not fulfilling its financial obligations under the fund,” he said. Shimao said in the filing. The company kept away from unspecified funds, claiming that the developer’s subsidiary was not directly involved in the repayment and was a guarantor.
Chinese financial news site on weekends Caixin reported that Shimao has put all its properties for sale. This includes a preliminary 10 billion yuan ($ 1.57 billion) transaction with a state-owned company to purchase Shimao International Plaza in downtown Shanghai.
It follows Reuters’ report on Friday Shimao failed to repay the full amount of the trust loan, Send the company to the default.
“We have not entered into a preliminary agreement regarding the disposal of Shanghai Shimao International Plaza,” Shimao said. The company also said it is in talks with potential buyers and may sell some properties “to reduce the Group’s debt.”
“As of the date of this announcement, we have no outstanding asset-backed securities,” the company said in a filing.
Shimao shares traded at a slightly higher price on Tuesday morning. It surged 19% on Monday.
Shimao says he is in talks to sell real estate to solve the debt problem.
Source link Shimao says he is in talks to sell real estate to solve the debt problem.
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