Investing.com – Shares of Chinese property developers fell on Tuesday after another developer said it missed an interest payment and warned it may not be able to repay all of its offshore debt obligations.
Agile Group Holdings Ltd (HK:) shares fell 15% in Hong Kong trading after the company said a grace period on interest payments on $483 million of senior notes expired but was not met on Monday.
In a statement, the firm said it would liaise with its creditors to find the “best possible” solution. It also added that it has not yet received notice of accelerated repayment from any of its senior note creditors.
Agile’s announcement saw the firm join a growing list of Chinese property firms struggling to meet their debt obligations amid a prolonged downturn in the property market. High-profile victims of this decline include China. Evergrande Group (HK:) and Country garden Holdings Company Ltd (HK:), both companies are in talks with their creditors over a debt restructuring plan.
Agile colleagues, including Powerlong Real Estate Holdings Ltd (HK:), Logan Property Holdings Co Ltd (HK:), Sunak Shares of China Holdings Ltd (HK:) and Wharf Real Estate Investment Co Ltd (HK:) fell between 0.7% and 4.1% in Hong Kong trading on Tuesday.
Losses in real estate stocks also kept the index trading sideways.
However, recent losses in real estate stocks have also contributed to some profit-taking after the sector surged higher over the past two weeks.
China has eased restrictions on home purchases in several major cities, with measures aimed at further boosting the property market and curbing a decline in the sector, which accounts for at least a quarter of China’s total GDP.
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Beijing also outlined plans for a massive 1 trillion yuan ($138 billion) bond issuance starting this week.
China Vanke (HK:) also stood out among its peers on Tuesday. The company’s Hong Kong shares rose 0.4% after local media reported that the developer recently received a large dose of financing from several banks.