Chinese developers are repurchasing their deep discounted dollar bonds.
Times China Holdings Ltd., Powerlong Real Estate Holdings Ltd. and Agile Group Holdings Ltd. disclosed a combined $132 million of additional buybacks in filings late Monday with Hong Kong’s stock exchange.
The involved notes all mature in March or April.
Dollar notes of Chinese builder’s have undergone months of price decline as the industry struggles with large chunk of debt burden. Besides, slumped home prices and sales have intensified the pressure. But some builders have been using the bond selloff to pare debt levels at prices well below face value.
According to Nomura International (Hong Kong) Ltd. analysts Jizhou Dong and Stella Guo, Powerlong’s repurchases are “one of the best ways to address any potential market concerns on the company’s financial status, as well as strengthen the market’s confidence” in the firm, as reported by Bloomberg.
