Hong Kong conglomerate Chow Tai Fook Enterprises has held talks with banks to refinance around HK$7.3 billion of debt due in June, Bloomberg News reported Monday, citing people familiar with the matter.

The firm is seeking a potential five-year facility to refinance the debt, the report said.

The negotiations come after CTFE repaid a separate loan with its own cash last year amid a challenging funding environment, Bloomberg reported.

CTFE is the largest shareholder in New World Development (HKG:0017), the builder that came close to default last year before securing a record HK$88.2 billion loan refinancing.

Given its more than 40% stake in New World, CTFE's fundraising efforts are seen as a gauge of banks' confidence in Hong Kong's embattled property market, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)