久久久无码人妻精品无码_6080YYY午夜理论片中无码_性无码专区_无码人妻品一区二区三区精99

Markets

China real estate bubble bursts in bond market

(Agencies)
Updated: 2010-05-31 16:50
Large Medium Small

Dollar bonds sold by China real estate companies this year are the worst performers among Asian non-financial corporate debt denominated in the US currency amid concern the nation's property market is overheating.

Yields on the $3.9 billion of bonds issued by Kaisa Group Holdings Ltd, Country Garden Holdings Co and seven other developers since January widened by an average 2.26 percentage points relative to Treasuries as of last week, according to data compiled by Bloomberg. That's more than the 2.05 percentage- point increase in spreads for the seven dollar-denominated bonds sold by other companies in Asia outside Japan.

Investors are demanding greater yields to lend to China property firms, a sign they expect borrowers will have a harder time meeting debt payments amid a government clampdown on lending. Goldman Sachs Group Inc and Credit Suisse Group AG cut their profit estimates for Chinese real estate companies after a 12.8 percent jump in real estate prices in April from a year earlier spurred the state to increase regulation.

"New issues by Chinese developers will stall for the time being," Vince Chan, the Hong Kong-based chief credit strategist with Amias Berman & Co LLP, a fixed-income advisory and brokerage firm founded by two former Citigroup Inc bankers, said in a phone interview. "Investors need handsome rewards for getting exposed to weaker fundamentals."

Widening spreads

The amount of dollar bonds issued by China developers represents 45 percent of all corporate dollar debt sales in Asia outside Japan this year, Bloomberg data show. The yield spread on $350 million of 13.5 percent notes sold by Shenzhen-based Kaisa last month widened the most of the nine issues, expanding to 16.52 percentage points from 11.07 percentage points, Nomura Holdings Inc prices on Bloomberg show.

Kaisa is developing 18 projects in Shenzhen, Dongguan and other cities in the Pearl River Delta, most of them high-rise residential complexes that combine recreational and commercial space, according to its website. An investor who bought the company's 2015 bonds at par would have lost 15.5 percent.

Elsewhere in credit markets, the extra yield investors demand to own company debt instead of Treasuries widened 5 basis points last week to 193 basis points, or 1.93 percentage points, Bank of America Merrill Lynch index data show. The spread, which peaked at 511 on March 30, 2009, is up from this year's low of 142 on April 21. Average yields rose to 4.06 percent, the highest based on weekly closes since the period ended March 5.

Sales slow

Corporate bond issuance worldwide slowed this month to $66.1 billion, down from $183 billion in April and the least since December 2000, according to data compiled by Bloomberg.

"Companies have to be prepared to strike and strike quickly," Rick Martin, the London-based director of treasury at Virgin Media Inc, the UK's second-largest pay-television company, said at a May 28 briefing in London. "The key is to have the team ready and primed and able to pull the trigger at short notice. I can't think of a time when the forces have been so polarizing."

The cost to insure US corporate debt against default rose last week. Credit-default swaps on the Markit CDX North America Investment Grade Index Series 14, which investors use to hedge against losses or to speculate on creditworthiness, increased 25.1 basis points this month to a mid-price of 117.2 basis points. The index typically rises as investor confidence deteriorates and falls as it improves.

Bond risk rose in Asia today, with the Markit iTraxx Asia index up 4 basis points, according to Royal Bank of Scotland Group Plc. The Markit iTraxx Japan index rose 5 basis points, Morgan Stanley prices show.

Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a company fail to adhere to its debt agreements. A basis point on a credit-default swap contract protecting $10 million of debt from default for five years is equivalent to $1,000 a year.

Emerging market

In emerging markets, spreads narrowed 16 basis points last week to 321 basis points, trimming the monthly increase to 63, according to the JPMorgan Emerging Market Bond Index.

China has added to regulations designed to cool the property market several times this year, including raising banks' reserve requirements three times since January, restricting pre-sales by developers and curbing loans for third-home purchases. It also raised minimum mortgage rates and tightened down-payment requirements for second homes.

Shanghai's plan to begin a property tax on residential real estate was submitted to the central government for review, the China Securities Journal reported today, citing unidentified people.

Demand ‘premium'

Goldman Sachs lowered its 2010 net income estimates for Chinese developers by an average 13 percent and reduced earnings forecasts for the next two years by 25 percent, analysts led by Yi Wang wrote in a May 19 report. Credit Suisse pared earnings- per-share estimates by as much as 15 percent for 2010 and 20 percent for 2011, citing the government's clampdown.

"With the negative headlines coming out of this sector, investors are less likely to be drawn to participate in new issues because of a high coupon," Tan Chew May, a credit analyst for Aberdeen Asset Management Asia Ltd, which oversees $1.5 billion of Asian dollar debt, said in a phone interview from Singapore. "With the trend of widening spreads, new names are forced to come at premium."

China property developers paid coupons as high as 14 percent to issue dollar debt this year, compared with an average 9.2 percent for other companies in Asia and 6.2 percent for US property companies. On average, Chinese property companies are paying a 10.875 percent coupon.

Renhe's delayed sale

Glorious Property Holdings Ltd, which has 26 real estate projects in cities including Shanghai, Beijing, Harbin and Changchun, postponed its first sale of dollar-denominated bonds in April. The Hong Kong-listed company cited poor credit market conditions for the delay.

Renhe Commercial Holdings Co, a developer of underground shopping centers based in Harbin, China, sold five-year, 11.75 percent dollar notes on May 18 to yield 974 basis points more than Treasuries after delaying the sale for two weeks.

The relatively strong finances of China developers means some companies can afford to pay double-digit coupons, according to Andy Mantel, Hong Kong-based founder of hedge fund manager Pacific Sun Investment Management Ltd.

Country Garden, which builds villas, townhouses and apartments in China, sold bonds in April with an 11.25 percent coupon. The company, controlled by China's second-richest woman, Yang Huiyan, said contracted revenue in the first quarter rose 82 percent on sales in the Guangdong area.

Fantasia's coupon

"The sector is relatively better financed than it was two years ago when there were serious liquidity issues," Mantel said in a phone interview. "Investors might not make any money on the actual bond, but they'll get their interest payments."

Fantasia Holdings Group Co's $120 million of five-year bonds pay the highest coupon at 14 percent. The company develops commercial and residential complexes in China's Pearl River Delta and Chengdu-Chongqing Economic Zone regions.

It raised HK$3.18 billion ($408 million) from an initial share sale in Hong Kong in November, boosting cash reserves to $497 million from a deficit, Bloomberg data show.

"Sales and pre-sales have increased cash balances for most companies by over 20 to 30 percent while fresh debt issuance has extended maturity profiles," analysts led by Raghav Bhandari at CreditSights Asia Research Ltd wrote in a note to clients May 20. "Companies are in a much better position to handle this period of strain than they were a year ago."

High yield

"People are attracted by the high coupons of the sector, but are fearful of the regulatory announcements and how it might affect the credits," Sean Henderson, head of Asia debt syndication at HSBC Holdings Plc, said in a phone interview from Hong Kong. "More recently, the overall market backdrop has taken the whole high-yield sector lower."

The yield spread on speculative-grade company dollar bonds in Asia rose 174 basis points this month as of May 28, compared with 50 basis points for investment-grade companies, JPMorgan indexes show. High-yield debt is rated below Baa3 by Moody's Investors Service and BBB- by Standard & Poor's.

Related readings:
China real estate bubble bursts in bond market Real estate a 'major business' of billionaires
China real estate bubble bursts in bond market China issues rules to prevent officials meddling in real estate
China real estate bubble bursts in bond market Hui Wing Mau: Real estate regulations reasonable
China real estate bubble bursts in bond market China may expand scope of real estate tax before May 20

Credit-default swaps insuring against Country Garden defaulting on its debt rose 343 basis points to 10.39 percentage point this month through May 18. The contracts suggest investors are pricing in a 50 percent chance of default.

Similar contracts insuring Agile's debt have soared 3.85 percentage points since mid-April, when China's central bank pledged to implement new lending rules to cool real estate "madness." At current rates investors are pricing in a 48 percent chance of default.

Chinese property bonds are unlikely "to recover meaningfully anytime soon," Amias Berman's Chan said. "If we start to see the regulatory measures taking effect in the next few months then there may be a reversal of fortunes. But optimistically I think it'll be the third or fourth quarter before things stabilize."

久久久无码人妻精品无码_6080YYY午夜理论片中无码_性无码专区_无码人妻品一区二区三区精99

    国产真实乱偷精品视频免| 亚洲一区二三区| av亚洲精华国产精华精华| 国产精品福利av| 色综合久久综合| 亚洲丰满少妇videoshd| 欧美一区二区视频免费观看| 久久国产人妖系列| 亚洲国产精品精华液ab| 色欧美日韩亚洲| 人人超碰91尤物精品国产| 久久久影视传媒| 一本久道中文字幕精品亚洲嫩| 亚洲成av人片一区二区| www国产精品av| 91美女片黄在线观看91美女| 亚洲成av人在线观看| 26uuu成人网一区二区三区| 北岛玲一区二区三区四区| 亚洲风情在线资源站| 精品成人佐山爱一区二区| www.在线欧美| 亚洲国产精品一区二区久久恐怖片 | 麻豆免费精品视频| 国产精品女主播在线观看| 欧美日韩一区视频| 国产精一品亚洲二区在线视频| 日韩理论片网站| 欧美一级欧美三级| 成人av网站免费观看| 天堂一区二区在线| 欧美激情中文字幕一区二区| 欧美日韩在线综合| 国产成人精品午夜视频免费| 亚洲成人黄色小说| 国产三级精品三级| 欧美老肥妇做.爰bbww视频| 丁香婷婷综合网| 日本美女一区二区| 最新不卡av在线| 欧美一级片在线看| 色哟哟日韩精品| 精品伊人久久久久7777人| 亚洲精品自拍动漫在线| 日韩精品一区二区三区视频播放 | 日本一区中文字幕| 国产欧美一区二区三区沐欲| 欧洲国产伦久久久久久久| 国产剧情av麻豆香蕉精品| 午夜天堂影视香蕉久久| 国产精品久久久久久亚洲毛片| 日韩视频一区在线观看| www.欧美精品一二区| 成人黄色大片在线观看| 免费成人你懂的| 一区二区三区不卡视频| 日本一区二区三区在线观看| 91精品免费观看| 色婷婷综合五月| 懂色一区二区三区免费观看 | 成人av集中营| 老色鬼精品视频在线观看播放| 夜夜嗨av一区二区三区中文字幕| 久久蜜桃一区二区| 91精品麻豆日日躁夜夜躁| 欧美最新大片在线看| av在线不卡电影| 国产成人在线电影| 精品一二三四区| 视频一区视频二区在线观看| 一区二区三区免费看视频| 国产精品伦理一区二区| 久久久久一区二区三区四区| 欧美一区二区精品在线| 欧美影院一区二区三区| 99视频一区二区三区| 国产成人亚洲精品青草天美| 极品少妇一区二区| 日本不卡一二三区黄网| 亚洲成av人片在线观看无码| 一区二区在线免费观看| 中文字幕在线一区免费| 国产精品私人影院| 国产拍揄自揄精品视频麻豆| 久久美女艺术照精彩视频福利播放| 91精品在线免费| 91麻豆精品91久久久久久清纯| 欧美色精品在线视频| 日本久久电影网| 99久久精品国产导航| 成人性生交大合| 国产经典欧美精品| 国产米奇在线777精品观看| 激情久久五月天| 久久精品久久精品| 六月丁香婷婷久久| 久久成人免费日本黄色| 美国一区二区三区在线播放| 蜜臀av在线播放一区二区三区| 日韩激情视频网站| 日韩国产欧美在线播放| 日韩二区在线观看| 蜜乳av一区二区| 精品夜夜嗨av一区二区三区| 国产一区二区三区免费看| 国产麻豆一精品一av一免费| 国产一区二区三区四区五区美女| 国产精品99久久久久久有的能看 | 欧美一区二区视频在线观看2022| 欧美精品18+| 91精品国产综合久久久久久久| 欧美一卡2卡3卡4卡| 欧美一级高清片在线观看| 日韩欧美国产系列| 精品国产一区二区精华| 精品第一国产综合精品aⅴ| 国产亚洲人成网站| 成人免费一区二区三区视频 | 青青草97国产精品免费观看无弹窗版 | 成人在线视频首页| 972aa.com艺术欧美| 91高清视频免费看| 在线电影院国产精品| 日韩精品一区二区三区视频播放| 久久免费偷拍视频| 成人欧美一区二区三区1314| 夜夜嗨av一区二区三区中文字幕| 婷婷成人激情在线网| 九一九一国产精品| 成人国产在线观看| 欧美综合亚洲图片综合区| 91精品国产综合久久久久久漫画 | 91精品国产综合久久久蜜臀图片| 精品国产三级电影在线观看| 国产精品天干天干在观线| 亚洲精选一二三| 日本欧美一区二区| 国产成人免费av在线| 在线国产亚洲欧美| 日韩欧美成人激情| 国产精品久久久久久久浪潮网站 | 欧美成人一级视频| 国产精品美女久久久久aⅴ国产馆 国产精品美女久久久久av爽李琼 国产精品美女久久久久高潮 | 成人黄色片在线观看| 在线这里只有精品| 日韩免费福利电影在线观看| 国产精品乱人伦中文| 午夜av电影一区| 国产a久久麻豆| 欧美视频三区在线播放| 亚洲精品一区二区三区精华液| 亚洲欧美自拍偷拍| 欧美a级一区二区| 懂色av一区二区三区免费观看| 欧美色综合天天久久综合精品| 精品福利一区二区三区免费视频| 亚洲欧美日韩系列| 激情文学综合插| 欧美亚洲综合在线| 2023国产精品| 亚洲一区二区不卡免费| 国产东北露脸精品视频| 欧美日韩国产综合一区二区三区 | 亚洲人成精品久久久久久| 青娱乐精品在线视频| 99久久婷婷国产综合精品电影| 51精品国自产在线| 中文字幕在线不卡视频| 蜜臀av性久久久久蜜臀aⅴ四虎 | 91免费看`日韩一区二区| 日韩欧美电影在线| 一区二区欧美精品| 国产成人免费xxxxxxxx| 欧美日韩dvd在线观看| 中文字幕第一区综合| 日韩影院免费视频| 91视频免费观看| 久久综合999| 亚洲电影在线播放| 成人国产精品免费观看| 欧美α欧美αv大片| 亚洲小少妇裸体bbw| 成人精品在线视频观看| 精品国内二区三区| 亚洲成av人片在线| 色综合久久综合| 国产日产欧产精品推荐色| 午夜av电影一区| 色噜噜狠狠成人中文综合| 国产亚洲欧美激情| 理论片日本一区| 欧美日韩精品三区| 亚洲欧美日本韩国| 高清视频一区二区| 欧美成人r级一区二区三区| 亚洲一区二区三区视频在线播放 | 一区二区三区在线影院| 成人三级伦理片| 精品精品国产高清a毛片牛牛 | 成人短视频下载|