Market Chatter: Overseas Chinese Town Enterprises Says State Support in Place After Vanke Stress

MT Newswires Live01-07

Overseas Chinese Town Enterprises said in meetings with bondholders on Monday and Tuesday that difficulties at China Vanke (HKG:2202, SHE:000002) have affected the property market this year, Bloomberg News reported, citing people familiar with the discussions.

The company said it was seeking to address investor concerns arising from the market impact, the people said.

Representatives also reportedly said they had received assurances from their owner, the State-owned Assets Supervision and Administration Commission of the State Council, that support would be provided as needed to ensure bond repayments are met.

The mid-sized developer, which focuses on cultural and tourism-related projects, added that the state asset supervisor is considering options including a cash injection or asset transfers, Bloomberg said.

Overseas Chinese Town Enterprises is the parent company of Shenzhen Overseas Chinese Town (SHE:000069), Overseas Chinese Town (Asia) Holdings (HKG:3366) and Konka Group (SHE:000016).

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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