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China's Shenzhen Stock Exchange recently met with some holders of Country Garden Holdings Co.'s credit default swap-linked yuan bond to discuss repayment options. Some bondholders have already registered their put option for early repayment, but if they agree not to exercise the option, the expiration of their CDS tied to the bond would be extended until the bond's maturity in December 2024. This meeting highlights Country Garden's struggle to meet its debt obligations amidst falling property prices and raises questions about the ability of investors to cash in on their investment in Chinese developers' CDS products. The bond, issued by Country Garden Real Estate Group Co., has 800 billion yuan ($112 billion) outstanding and was listed on the Shenzhen Stock Exchange. Country Garden is China's largest private developer and has faced default on a dollar bond in October. [Extracted from the article]

Chinese developer China South City, which is partially owned by the Shenzhen SEZ Construction and Development Group, is seeking consent from bondholders to extend the maturity and lower the interest rates of its dollar notes due in 2024. Despite receiving state backing, the company has struggled to repay its debts, highlighting the limitations of government support. The developer's extension request comes despite the keepwell clauses provided by the Shenzhen state asset regulator affiliate, which do not guarantee payment from the parent company. An ad-hoc group of bondholders plans to reject the company's proposal, and experts warn that not all state-linked developers in China receive the same level of support from the government. [Extracted from the article]

Chinese developer China South City, which is partially owned by the Shenzhen SEZ Construction and Development Group, is seeking consent from bondholders to extend the maturity and lower the interest rates of its dollar notes due in 2024. Despite receiving state backing, the company has struggled to repay its debts, highlighting the limitations of government support. The developer's extension comes despite the keepwell clauses provided by the Shenzhen state asset regulator affiliate, which are meant to ensure solvency but do not guarantee payment. An ad-hoc group of bondholders plans to reject the company's proposal to further extend the bonds. The Chinese government's measures to support the property sector have so far been disappointing, with even major developers like Country Garden Holdings defaulting on bonds. Not all state-linked developers receive the same level of support, and it is not uncommon for Chinese state-owned enterprises to refuse to honor their keepwell agreements. [Extracted from the article]

Chinese developer China South City, which is partially owned by the Shenzhen SEZ Construction and Development Group, is seeking consent from bondholders to extend the maturity and lower the interest rates of its dollar notes due in 2024. This comes despite the company receiving state backing and keepwell clauses from the Shenzhen state asset regulator affiliate. An ad-hoc group of bondholders plans to reject the company's proposal. The situation highlights the limitations of government support in the real estate sector, which has been struggling despite efforts to stabilize it. [Extracted from the article]

China South City Holdings Ltd., a state-supported developer based in Shenzhen, is seeking consent from bondholders to extend the maturity and lower the interest rates of its dollar bonds due in 2024. However, a credit analyst has noted that the company has shown a low willingness to fully and timely service its offshore dollar bonds, despite receiving additional funding from its state-owned parent. The analyst also mentioned that not all state-linked developers in China are the same, and only the larger ones with more systemic importance would receive debt servicing-related support from the Chinese government. The analyst warned that it would not be surprising if Shenzhen SEZ Construction and Development Group Co., the state-owned firm that bought a stake in China South City Holdings, tries to evade full liability and push for a second restructuring of the company's dollar bonds. [Extracted from the article]