Chairman's house used for $300m Evergrande loan

Finance | Staff reporter and agencies 28 Oct 2021

China Evergrande (3333) pledged a house on The Peak in Hong Kong held by its chairman, Hui Ka Yan, to China Construction Bank (Asia) as collateral for a HK$300 million loan, data of the Lands Registry showed.

This was after authorities in Beijing asked Hui to use his own money to help solve the company's debt crisis.

The 5,000-square-foot house on Black's Link was pledged as collateral to China Construction Bank (Asia) on October 19 for a mortgage loan. The market value of the house is about HK$700 million.

The official directive came after Evergrande missed an initial September 23 deadline for interest payment on one of its dollar bonds.

Colour Life Services (1778), a unit of Fantasia, resumed trading and slumped 35.6 percent yesterday after it said it has transferred its assets to Country Garden Services (6098) to repay debts.

However, some foreign investors found an opportunity amid a worsening slump in China's property sector as Capital Group, a global funds management company, increased its stakes in Shimao Services (0873) by purchasing 2.05 million shares on October 25, with a total amount of HK$32.54 million.

Meanwhile, some Chinese property developers voiced their intention to the regulators to extend their offshore bond maturities or undertake a debt restructuring at a meeting jointly held by the National Development and Reform Commission and the State Administration for Foreign Exchange on Tuesday.

The regulators, however, told developers facing large offshore debt maturity to evaluate their repayment risks and report difficulties, sources said.

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