Latest news with #NewWorldDevelopment
Bloomberg
3 hours ago
- Business
- Bloomberg
New World's Financing Back in Spotlight as Loan Deadline Nears
Hong Kong developer New World Development Co. is returning to the spotlight this month as investors' focus turns to its plan to raise as much as $2 billion through a new loan, just days after closing a record refinancing deal. The distressed builder in late May invited more banks to join the three-year facility backed by its crown jewel asset, Victoria Dockside, with a commitment deadline set for July 11, Bloomberg News reported.
Business Recorder
a day ago
- Business
- Business Recorder
China stocks flat as investors gauge global trade tensions
HONG KONG: Chinese stocks were flat on Wednesday as investors weighed persistent global trade tensions and refrained from placing massive bets, while Hong Kong shares closed higher after a local holiday. At close, the Shanghai Composite index held its ground at 3,454.79, hovering near a three-month high. China's blue-chip CSI300 index climbed less than 0.1%. Defensive sectors helped lift the markets onshore, with the banking sector sub-index up 0.8% while liquor distiller sector advanced 0.6%. Tech shares weighted on the markets, with the semiconductor sector and AI-related shares losing around 2% each. Hong Kong shares edged higher as traders returned from a local holiday. The benchmark Hang Seng Index added 0.6% at 24,221.41, while the Hang Seng China Enterprises Index, which tracks Chinese H-shares listed in the city, gained 0.5%. The local property sub-index added 2%, helping boosting the markets. Cash-strapped property giant New World Development surged nearly 10% after closing $11.2 billion refinancing deal. Caution prevailed across the region as investors await developments in trade talks, after US President Donald Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States. The US and India are nearing a deal that would lower tariffs on American imports to the South Asian country, while doubt has been cast on a deal with Japan. Around the region, MSCI's Asia ex-Japan stock index edged up 0.1%, while Japan's Nikkei index was down 0.6%. BlackRock Investment Institute said they are neutral on Chinese equities in the second half due to trade policy and stimulus uncertainties, but see selective opportunities in priority sectors that could receive targeted support.
Time of India
a day ago
- Business
- Time of India
New World Development shares jump after closing $11.2 billion refinancing deal
HONG KONG : Shares of New World Development surged on Wednesday after the cash-strapped Hong Kong property developer closed an HK$88.2 billion ($11.2 billion) loan refinancing package earlier in the week. The package, one of the largest ever in Hong Kong, concludes months of negotiations over a debt refinancing designed to bring the company back from the brink of default. New World's shares soared around 8% in morning trade, compared to the broader market's 0.7% rise. They resumed trading after a holiday in Hong Kong on Tuesday and provided the first stock market reaction since the successful refinancing was announced late on Monday. Its 2027 bonds were bid at 71.751 cents on the dollar, according to Duration Finance, up from 71.69 on Monday morning. Financial markets are closely watching the city's major developer's attempts to increase cash flow and repay public debt, as any non-repayment could trigger a crisis reminiscent of the one in mainland China that started in 2021 and led to scores of property company defaults including former industry behemoth Evergrande, and weigh both on the property sector and the banking system. New World, among the most indebted in the industry, said in a filing on Monday that it had refinanced portions of its existing offshore unsecured debt, including bank loans, through a new facility and had also aligned the terms of its remaining loan agreements. The new facility consists of multiple tranches of bank loans with different maturities, the earliest being June 30, 2028. While the refinancing package provided New World some breathing room and removed near-term default risk, analysts said its liquidity stress would likely remain. JPMorgan said in a report the developer still faces other debts totalling HK$100 billion ($12.74 billion), and its annual interest expenses were estimated to be HK$8-9 billion, though the size could be less with the recent drop in interbank rates. In an earlier move to conserve cash, New World said last month it would defer coupon payments worth $77.2 million on four perpetual bonds scheduled for June. Other highly leveraged and smaller developers are also battling with liquidity stress as home prices in the financial city have dropped nearly 30% from a 2021 peak and office vacancy rates have risen to record highs. Emperor International said last week HK$16.6 billion of its bank borrowings had become overdue or had breached certain loan terms.
RTHK
2 days ago
- Business
- RTHK
Property plays help Hang Seng Index end higher
Property plays help Hang Seng Index end higher The Hang Seng Index has ended the day up 149 points, or 0.62 percent, at 24,221. File photo: RTHK Mainland Chinese stocks were flat on Wednesday as investors weighed persistent global trade tensions and refrained from placing massive bets, while Hong Kong shares closed higher. The Hang Seng Index ended the day at 24,221, up 149 points or 0.62 percent, while the Hang Seng China Enterprises Index, which tracks Chinese H-shares listed in the city, gained 0.5 percent. The local property sub-index added two percent, helping to boost the markets. Cash-strapped property giant New World Development surged nearly 10 percent after closing a HK$88.2 billion refinancing deal. On the mainland, the benchmark Shanghai Composite Index closed down 0.09 percent at 3,454 while the Shenzhen Component Index closed 0.61 percent lower at 10,412. Their combined turnover was 1.38 trillion yuan, down from 1.47 trillion yuan on the previous trading day. Shares in the papermaking and cement industries led the gains, while those in aircraft manufacturing and electronic information sectors suffered the most. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 1.13 percent to close at 2,123. Defensive sectors helped lift the markets onshore, with the banking sector sub-index up 0.8 percent while liquor distiller sector advanced 0.6 percent. Tech shares weighed on the markets, with the semiconductor sector and AI-related shares losing around two percent each. Caution prevailed across the region as investors await developments in trade talks, after US President Donald Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States. (Reuters/Xinhua)
Yahoo
2 days ago
- Business
- Yahoo
New World Development scion Adrian Cheng resigns from board
Cheng tendered his resignation as a non-executive director and non-executive vice-chairman of New World with effect from July 1. New World Development Co.'s third-generation heir Adrian Cheng has completely quit the beleaguered Hong Kong property developer less than a year after stepping down as chief executive officer. Cheng tendered his resignation as a non-executive director and non-executive vice-chairman of New World with effect from July 1 'to devote more time on public services and other personal commitments' and he has no disagreement with the board relating to his resignation, the company said in a stock exchange filing on Monday. Cheng's resignation as CEO in September was rare in Hong Kong's property industry, where the biggest players are all controlled by families that carefully plan their succession. Long assumed to be a favourite of the late patriarch Cheng Yu-Tung, the Harvard-educated Adrian had been seen as the heir apparent of the business group led by his billionaire dad. But New World has gotten into trouble since Adrian was elevated to CEO in 2020, four years after his grandfather died. During his tenure, New World has sunk deeper into debt than any other major Hong Kong developer and last year it posted its first annual loss in two decades. At the end of 2024, net debt reached 96% of shareholder equity, according to Bloomberg Intelligence, making it one of the most leveraged developers in Hong Kong. Cheng's resignation announcement came hours after the developer announced the closing of a record HK$88.2 billion (US$11.2 billion or $14.3 billion) loan refinancing deal, the largest-ever in the city. The company successfully refinanced certain of its existing offshore unsecured financial indebtedness, including bank loans, through a new refinancing term loan facility, it said in a separate filing to the Hong Kong stock exchange Monday. 2 bil loan refinancing deal New World gets 100% lender approval for HK$87.5 bil refinancing Morningstar data shows five Asian high-yield bonds with most exposure to New World Development group Read more stories about where the money flows, and analysis of the biggest market stories from Singapore and around the World Get in-depth insights from our expert contributors, and dive into financial and economic trends Follow the market issue situation with our daily updates Or want more Lifestyle and Passion stories? Click hereError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
