In November, China's housing ministry announced plans to expand the "whitelist" mechanism for urban real estate financing coordination, aiming to include all commercial housing projects and enhance policy support effectiveness. Key developer debt restructuring developments this month include:
Sunac China successfully completed its domestic and offshore debt restructuring, resolving approximately RMB 60 billion in liabilities. The offshore restructuring plan approved by Hong Kong's High Court on November 5 features a "full debt-to-equity" approach, issuing two types of mandatory convertible bonds with conversion prices of HK$6.80/share (convertible within 6 months) and HK$3.85/share (convertible within 18-30 months). This marks Sunac as the first major developer to virtually eliminate its $9.6 billion offshore debt.
Country Garden's offshore restructuring proposal passed creditor meetings early this month, with court approval sought for December 4. The plan covers $17.7 billion across 34 debt instruments using a combination of cash repurchases, equity instruments, debt swaps, and payment-in-kind options. If fully subscribed, it could reduce liabilities by $11.7 billion (≈RMB 84 billion).
EVERGRANDE saw China Great Wall Asset Management announce disposal of RMB 1.092 billion claims against its property unit, with collateral including 25 Guangzhou properties. Meanwhile, Guangzhou State-Owned Capital took control of two EVERGRANDE EV subsidiaries after bankruptcy petitions were filed against the Tianjin unit.
Other notable developments: - Logan Group proposed perpetual bond term modifications - Shimao Group saw some bonds gain 5-7% - Central China Real Estate bonds fell sharply, with one dropping nearly 70% below $1 - Ronshine China proposed 6-month extensions for 6 domestic bonds while its offshore bonds showed mixed performance - Tianyu Holdings received Bermuda court liquidation order - Powerlong's subsidiary faced BVI liquidation petition - Lvjing China's hearing adjourned to February 2026
Trading volumes for distressed developers' offshore bonds declined significantly month-over-month. Among notable price movements: - EVERGRANDE bonds fell below $1.20 range - Fantasia Holdings bonds dropped ~30% except one issue rising 9.19% - Times China bonds gained 6.49% ahead of expected November 28 restructuring - Ronshine bonds showed 16% gain versus 17% loss across different maturities - Logan Group bonds rose 5-6% on proposed term changes
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