Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Shimao Group Shares Tumble Over Unit’s Loan Default

Stock MarketsJan 06, 2022 11:32PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – Shimao Group Holdings Ltd.’s Hong Kong shares tumbled on Friday, with the price of bonds issued by flagship unit Shanghai Shimao Co. Ltd. also falling, after one of its units defaulted on a loan.

Shimao Group shares dropped 7.04% to HK$4.62 ($0.72) by 11:27 PM ET (4:27 AM GMT) after tumbling more than 17% earlier on Friday. A July 2022 Shanghai exchange-traded bond issued by Shanghai Shimao also fell more than 25%, triggering a trading pause over what the Shanghai Stock Exchange called "abnormal fluctuations."

A Bloomberg index of total returns on China high-yield dollar bonds fell 1.9% on Thursday, the most in two months, a potential sign of a wider fallout.

Shimao Group suffered its biggest-ever bond rout on Thursday after a creditor said one of the developer’s units defaulted on a local loan. The unit failed to pay CNY645 million ($101.10 million) of a total CNY792 million due by Dec. 25, according to a notice from the China Credit Trust Co. that was sent to investors. China Credit Trust had demanded early repayment by Dec. 25 after the developer failed to meet installment requirements, the notice added.

However, the unit that missed the payment said in a stock exchange filing that the incident will not trigger investor demands for accelerated repayment of its debt in public markets. The filing added that the unit faces liquidity pressure and will take steps to quicken asset sales while insisting that the unit had not suffered any public-market debt default.

Meanwhile, Shanghai Shimao Investment Management on Wednesday pledged 265 million shares, or a 7.06% stake in Shanghai Shimao with Ningbo Commerce Bank on Wednesday to fund its operations, according to an exchange filing. Shanghai Shimao Investment Management and two other companies controlled by founder Hui Wing Mau have pledged a combined 560 million shares of Shanghai Shimao, or a 14.93% stake in the company, as of Thursday.

Shimao Group Shares Tumble Over Unit’s Loan Default
 

Related Articles

Israel stocks lower at close of trade; TA 35 down 0.43%
Israel stocks lower at close of trade; TA 35 down 0.43% By Investing.com - May 18, 2022

Investing.com – Israel stocks were lower after the close on Wednesday, as losses in the Insurance, Financials and Communication sectors led shares lower. At the close in Tel Aviv,...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email