BUZZ-China property developer Aoyuan jumps after it estimates H1 profit

Reuters08-15

** Shares in Chinese property developer Aoyuan Group

rise as much as 31% to one-month high

** Aoyuan is the fourth best performer at the Hong Kong Stock Exchange

** Company says it expects to record a net profit of 21-23 billion yuan ($2.9-3.2 billion) in H1, vs 2.9 billion yuan net loss a year ago, due to restructuring gains from the completion of its offshore debt restructuring

* Excluding the restructuring gains, however, it expects to post a loss during the period due to a drop in property sales and rise in financing costs

** Shares of another developer which has completed offshore debt restructuring, Zhongliang Holdings , also surge 27% in early afternoon trades before retreating to negative territory

** Hang Seng Mainland Properties Index eases 0.4%

** Most Hong Kong-listed Chinese property developers have defaulted on their offshore debt since 2021 amid a debt crisis in the sector but only a handful have completed a debt restructuring

($1 = 7.1551 Chinese yuan renminbi)

(Reporting by Clare Jim)

((clare.jim@tr.com))

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