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Chinese Housing Developers Still Mired In Default Risks

MNI (Singapore)

Chinese housing developers face increasing default risks amid declining home sales and a tightening financing environment, the Securities Times reported. It noted real estate bond defaults and rollovers reached CNY134 billion across 30 issuers as of Sep 19. Of the 194 A-share and Hong Kong-listed developers, 141 reported a year-on-year decline in net profit, the Times said citing their semi-annual reports. There are 19 developers, including Evergrande and Sunac, that delayed releasing their reports. Developers are busy expanding sales, disposing assets, and discussing debt extensions with creditors to avoid cross-default clauses and introducing state-owned developers as strategic investors, the newspaper said.

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