NWD shares jump as major banks sustain credit support for the developer

New World Development (0017) shares jumped as much as 3.6 percent to HK$5.37 on Thursday, following reports that major mainland banks maintained, and may potentially increase, their credit support for the developer. 

Credit intelligence provider Octus, citing sources, reported the mainland regulators held a meeting last month and instructed the country’s four largest state-owned banks—China Construction Bank (0939), Agricultural Bank of China (1288), Industrial and Commercial Bank of China (1398), and Bank of China (3988)—to sustain their existing credit lines for New World Development and explore additional financing options.

The banks are reportedly reviewing their exposure to the developer and assessing the potential implications of increasing their credit support.

Shares of other Hong Kong developers were mixed. 

Shares of Henderson Land (0012) rose 0.2 percent to HK$22.90, while Sino Land (0083) advanced 1.8 percent to HK$7.98. CK Asset (1113) was down 0.14 percent to HK$34.65, and Sun Hung Kai Properties (0016) edged down 0.3 percent to HK$75.35.

STAFF REPORTER