Shares of Shimao spiked nearly 7% on Monday after Chinese business publication Caixin reported the embattled developer is selling all of its real estate projects, both residential and commercial. As debt within China’s real estate sector mounts up, developers such as Evergrande have been attempting to sell off their assets in recent months to ease the cash crunch. Shimao would be the latest to follow suit. The stock has since pared its gains but was still trading more than 2% higher. The rally marked a turnaround from Friday’s session when it plunged nearly 17% after it failed to make full repayment on a trust loan. The agency said supervision of presales funds remains “very tight.” This means that developers have to retain a large proportion of its cash from property pre-sales, limiting funds that can be used to repay debt maturities. China’s massive real estate industry has come under pressure as Beijing sought to reduce developers’ reliance on debt in the last two years. Payments to construction firms and suppliers before the Lunar New Year holiday in early February will likely take precedence, S&P said, with authorities emphasizing the importance of honoring home deliveries to buyers. – CNBC Share this: Share on X (Opens in new window) X Share on Facebook (Opens in new window) Facebook Share on LinkedIn (Opens in new window) LinkedIn Share on WhatsApp (Opens in new window) WhatsApp Share on Telegram (Opens in new window) Telegram Like this:Like Loading… Related Post navigation Sonos Wins Google Import Ban Ruling In U.S. Patent Fight Testing Firms To Lose Revenues As U.K. Abolishes Pre-Arrival Covid Tests
