Distressed Chinese Developers Moving Closer to Reset -- Market Talk

Dow Jones
Sep 25

0356 GMT - Distressed Chinese developers are moving closer to a reset following progress in restructuring, according to HSBC analysts. They think the balance sheets and liquidity situations of defaulted developers such as Agile, Country Garden and Shimao will improve materially once their debt restructurings are completed. However, the companies' shares risk dilution due to their mandatory convertible bonds, they note. These distressed developers are now focused on recapitalizing and monetizing inventory, as the peak of housing delivery obligations has passed, the analysts say. Meanwhile, China's leading developers are positioned to monetize their land banks upon launching their high-end projects acquired earlier this year, they add. (sherry.qin@wsj.com)

 

(END) Dow Jones Newswires

September 24, 2025 23:56 ET (03:56 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10