In the small developer’s units, Double Bliss, Mingwan Investments and Prestige Well an approximate loss of over HK$177 million ($22.7 million) were anticipated from disposal of shares and loans
On Sunday, In Hong Kong Stock exchange filing, China Aoyuan the Chinese property developer said that it would dispose of some of the assets seized in its Hong Kong units for HK$900 million ($115.5 million). The HK$900 million comprises sales of shares and loans.
In the small developer’s units, Double Bliss, Mingwan Investments, and Prestige Well an approximate loss of over HK$177 million ($22.7 million) were anticipated from disposal of shares and loans.
In recent months China‘s property sector has been under serious pressure and attention as China Evergrande Group grapples with feasible insolvency. It made a last-minute bond payment last week but that achieved little to appease concerns in the country’s broader property segment
“Having regard to the prevailing market conditions, the directors consider that the disposal represents a good opportunity to realize the value of the properties, enhance the liquidity of the group and generate additional working capital,” Aoyuan’s filing read.
On Sunday, Chinese developer Sunac China Holdings individually declared a HK$5.1 billion share sale in a stock exchange filing. It will also position shares in its property services unit for HK$2.3 billion.
The company statement said, “The purposes of the placing and the subscription are to further enlarge the company’s shareholder base and optimize the capital structure of the company.”
The world’s most indebted developer Evergrande has been falling from deadline to deadline as in liabilities it asserts with more than $300 billion, out of which dollar bonds are of $19 billion.