{"id":1734560,"date":"2022-11-11T06:04:04","date_gmt":"2022-11-11T11:04:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1734560"},"modified":"2022-11-11T07:03:12","modified_gmt":"2022-11-11T12:03:12","slug":"chinese-builder-cifi-holdings-halts-foreign-debt-payments","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chinese-builder-cifi-holdings-halts-foreign-debt-payments\/","title":{"rendered":"Chinese Builder CIFI Holdings Halts Foreign Debt Payments"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fchinese-builder-cifi-holdings-halts-foreign-debt-payments%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1734560&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Despite foreign debt default, property developers turn to domestic capital raising to survive under tough policies<\/p>\n<div>\n<p><em>News Analysis<\/em><\/p>\n<p>Chinese enterprise CIFI Holdings (00884.HK) recently announced that it had suspended all foreign debt payments due to deteriorating cash flow but would\u00a0repay domestic <a href=\"https:\/\/www.theepochtimes.com\/t-debts\">debts<\/a>\u00a0to maintain domestic financing. This may indicate that Chinese firms are now cutting off their international capital ties amid tightened\u00a0policies and turning to domestic investment to survive.<\/p>\n<p>CIFI Holdings <a href=\"https:\/\/www1.hkexnews.hk\/listedco\/listconews\/sehk\/2022\/1101\/2022110100026_c.pdf\">stated<\/a> on Nov. 1 that it was suspending principal and interest payments to all overseas creditors, citing weakening sales and stagnant cash flow since September. And despite its \u201clargest efforts, it failed to generate sufficient cash to meet current and future obligations.\u201d<\/p>\n<p>As of Nov. 1, CIFI Holding\u2019s foreign debt\u2014including bank loans, senior notes, and convertible bonds\u2014totaled approximately $6.85 billion, with the total outstanding principal, interest, and related surcharges at roughly $414 million.<\/p>\n<p>Despite external debt defaults, CIFI Holdings said it would settle its domestic debts to guarantee its operation and maintain its domestic financing.\u00a0<span>\u00a0<\/span><\/p>\n<p>Chu Hanshi, a UK-based financial expert, told The Epoch Times on Nov. 4 that CIFI Holdings has encountered operation headwinds and it can\u2019t take on new debt to pay off old debt, either at home or abroad, so it has completely given up on its foreign debt.<\/p>\n<p>However, CIFI Holdings is selective in its debt repayment so that it can \u201csupport its domestic business as a priority, as it says that the domestic debts would be repaid on schedule,\u201d Chu said.<\/p>\n<p>This selective debt repayment behavior may be related to the <a href=\"https:\/\/www.theepochtimes.com\/beijing-halts-over-40-ipos-amid-probe-into-broker-law-firm_3961547.html?\">tightening policy that has prevented private companies<\/a> from seeking foreign investment in the past few years, such as the ride-hailing tech company\u00a0<a href=\"https:\/\/www.theepochtimes.com\/t-didi-chuxing\">Didi Chuxing<\/a> and\u00a0after-school tutoring programs\u00a0that have exited the U.S. stock market. This has left private companies dependent only on domestic capital to run their business.<\/p>\n<p>CIFI Holdings\u2019 2022 interim financial report released on Sept. 29 <a href=\"https:\/\/www1.hkexnews.hk\/listedco\/listconews\/sehk\/2022\/0929\/2022092900852_c.pdf\">showed<\/a> that sales in the first half of the year fell 53.6 percent, net profit dropped 64.5 percent, and net profit in favor of shareholders plunged 79.7 percent.<\/p>\n<p>CIFI Holdings ranked 14th with sales of 113.38 billion yuan (about $15.9 billion) and 13th with property sales of 7.81 million square meters on the January-October 2022 China Real Estate Enterprise Sales Results Ranking,\u00a0<a href=\"https:\/\/report.cih-index.com\/detail\/49309.html\">released<\/a> by China Index Academy on Oct. 31.<\/p>\n<p>As one of China\u2019s prominent <a href=\"https:\/\/www.theepochtimes.com\/t-real-estate-2\">real estate<\/a> companies, CIFI Holdings, which is headquartered in Shanghai, received credit enhancement from China Bond Insurance Corporation in August and is participating in the second round of domestic bond issuance projects, <a href=\"http:\/\/www.zqrb.cn\/finance\/hongguanjingji\/2022-11-03\/A1667427786711.html\">according<\/a> to a report by state-run financial media\u00a0Securities Daily on Nov. 3.<\/p>\n<figure id=\"attachment_4850910\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/GettyImages-917205254-1200x806-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-large wp-image-4850910\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/GettyImages-917205254-1200x806-1.jpg\" alt=\"Epoch Times Photo\" width=\"640\" height=\"430\" \/><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-4850910\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/GettyImages-917205254-1200x806-1.jpg\" alt=\"Epoch Times Photo\" width=\"640\" height=\"430\" \/><\/noscript><\/figcaption><\/a> An elderly woman looks at the price tags of houses at a local real estate office in downtown Shanghai on Feb. 12, 2018. (Johannes Eisele\/AFP via Getty Images)<\/figure>\n<h2>Property Firms Struggle to Survive<\/h2>\n<p>The first 10 months of the year saw the top 100 Chinese real estate companies totaling corporate sales of 6,095.46 billion yuan (about $850 million), down 43.4 percent year-over-year, while total sales in October fell 26.5 percent year-over-year, according to a <a href=\"https:\/\/report.cih-index.com\/detail\/49309.html\">report<\/a> by China Index Academy.<\/p>\n<p>As of Nov. 1, the report said that more than 300 provincial and municipal governments in China had adjusted their policies more than 900 times to stimulate the real estate market, with an average of 90 policy adjustments per month.<\/p>\n<p>Despite various stimulus incentives, however, the so-called \u201cGolden September and Silver October\u201d\u2014the two months that are known as the traditional peak season for housing sales in China\u2014did not arrive as expected for the real estate market.<\/p>\n<p>\u201cCIFI Holdings\u2019 performance this year shows that it has been fairly cautious in acquiring land and has already sold a number of projects in the third quarter of this year to raise funds,\u201d Chou said.<\/p>\n<p>This may include the following moves. On July 11, CIFI Holdings <a href=\"https:\/\/www1.hkexnews.hk\/listedco\/listconews\/sehk\/2022\/0711\/2022071100874_c.pdf\">sold<\/a> some of its Shanghai units for 187 million yuan (about $25 million). On Aug. 31, the company <a href=\"https:\/\/www1.hkexnews.hk\/listedco\/listconews\/sehk\/2022\/0831\/2022083100372_c.pdf\">raised<\/a>\u00a0roughly HK$628 million (about $80 million) through discounted share allotments. On Sept. 6, it <a href=\"https:\/\/www1.hkexnews.hk\/listedco\/listconews\/sehk\/2022\/0906\/2022090600004_c.pdf\">declared<\/a> to sell part of its Hong Kong assets to a joint venture of Wang On and Dutch fund manager APG for HK$1.34 billion ($170 million). On Sept. 9, CIFI Holdings\u00a0<a href=\"https:\/\/www1.hkexnews.hk\/listedco\/listconews\/sehk\/2022\/0909\/2022090901667_c.pdf\">transferred<\/a> part of its interest in its Nanjing leasing project, returning 117 million yuan (approximately $16 million) in the capital.<\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-10-31\/china-builders-have-292-billion-of-debt-coming-due-through-2023\">According<\/a> to a Nov. 1 report by Bloomberg, in the fourth quarter of 2022, the total debt maturities of Chinese property developers\u2014including onshore and offshore bonds and loans, and domestic trust loans\u2014reached $53.7 billion; in 2023, total debt maturities could be $72.3 billion in the first quarter and $238 billion for the whole year.<\/p>\n<p>Although total debt maturities in 2023 could be 25 percent lower than in 2022, China\u2019s real estate developers still feel the pressure of heavy debt servicing due to the market downturn and declining sales, Chu said.<br \/><strong>\u00a0<\/strong><\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-kathleen-li\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/08\/WEB_KathleenLi.jpg\" alt=\"Kathleen Li\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Kathleen Li has contributed to The Epoch Times since 2009 and focuses on China-related topics. She is an engineer, chartered in civil and structural engineering in Australia.<\/p>\n<\/p><\/div>\n<\/div>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-ling-xiong\"><img decoding=\"async\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/default-user.png\" alt=\"Lynn Xu\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Despite foreign debt default, property developers turn to domestic capital raising to survive under tough policiesNews Analysis Chinese enterprise CIFI Holdings (00884.HK) recently announced that it had suspended all foreign<\/p>\n","protected":false},"author":1,"featured_media":1734563,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1734560","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1734560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1734560"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1734560\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1734563"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1734560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1734560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1734560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}