Mainland developers rebounded yesterday, although China Evergrande Group (3333) plunged 12.54 percent after scrapping a possible deal with Hopson (0754).
This came before China's banking regulator vowed to keep its curbs on the property market, dismissing concerns that the crisis enveloping Evergrande will have any major impact on the credit profile of the sector as a whole.
China's banking sector saw its bad-loan ratio rise to 1.87 percent at the end of September versus 1.86 percent three months earlier as the impact of the Covid-19 pandemic lingered.
Evergrande, China's No 2 developer, said it had made no further progress on asset sales and may not be able to meet its financial obligations, days before the end of a grace period on a dollar-bond coupon that the company failed to pay in September.
REDD reported Evergrande has won a more than three-month extension to the maturity of a US$260 million (HK$2.03 billion) bond issued by joint venture Jumbo Fortune Enterprise and guaranteed by Evergrande beyond October 3, after agreeing to provide extra collateral.
And Reuters reported that Evergrande chairman Hui Ka Yan has agreed to pump personal wealth into a Chinese residential project tied to the bond to ensure it gets completed, paving the way for bondholders to get their dues.
Evergrande's shares plunged 12.5 percent. REUTERS
