Slimmed-down share sale darkens outlook for China Evergrande’s cash dash

HONG KONG (Reuters) – China Evergrande Group, the country’s most indebted property developer, on Wednesday said it has raised $555 million in a secondary share sale, settling for half its initial target and sparking a 16% drop in its share price.

FILE PHOTO: The logo of China Evergrande Group is seen in an exterior view of the China Evergrande Centre in Hong Kong, China, March 26, 2018. REUTERS/Bobby Yip/File Photo

To help pay debt, the firm sold 260.65 million shares at HK$16.50 ($2.13) each – the low end of a price range flagged by its bankers in a term sheet when the deal launched on Tuesday.

Evergrande has been scrambling to raise cash as China’s government tackles what it considers excessive borrowing in the real estate development sector with new debt-ratio caps.

Since August, the developer has raised $3 billion in pre-IPO funding for a

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Markets mixed after Trump-Biden debate; data lifts China

Stocks were mixed in Asia on Wednesday while upbeat manufacturing data lifted shares in China as investors studied the outcome of the debate between President Donald Trump and his Democratic challenger, Joe Biden.

Hong Kong and Shanghai led regional gains while Japan’s Nikkei 225 edged lower. Overnight, the S&P 500 lost 0.5% as heavy selling of banks helped reverse some of the gains the market a day earlier.

Investors remain cautious with COVID-19 infections on the rise again in the U.S. and elsewhere. The Trump-Biden debate occurred as coronavirus deaths worldwide have surpassed 1 million. Many millions of people worldwide are jobless.

A survey of Chinese manufacturers, t he Caixin manufacturing purchasing manager’s index, showed economic activity accelerating further in September as businesses recovered from the downturn earlier this year due to the pandemic.

The Caixin manufacturing PMI slipped to 53.0 from 53.1 in August, on a scale of 1-100

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Burger King China Owner Weighs Sale of $1.2 Billion Unit

(Bloomberg) — TAB Food Investments, the largest global franchisee of Restaurant Brands International Inc., is exploring a sale of its China business in a deal that would value the asset at more than $1.2 billion, people with knowledge of the matter said.



a group of people standing in front of a sign: Men walk past a Burger King Worldwide Inc. store in the Luohu district of Shenzhen, China, on Thursday, Dec. 19, 2013.


© Bloomberg
Men walk past a Burger King Worldwide Inc. store in the Luohu district of Shenzhen, China, on Thursday, Dec. 19, 2013.

TAB Foods, or TFI, is working with an adviser to gauge interest for its 50% stake in Burger King’s Chinese operations from potential suitors including private equity firms, the people said. A sale could kick off as soon as next month, the people said, asking not to be identified as the information is private.

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The Istanbul-based TFI previously considered a Hong Kong initial public offering of the Chinese business after earlier scrapping plans for a U.S. share sale of its global operations, people

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US issues sweeping new travel warning for China, Hong Kong

BEIJING – The U.S. on Tuesday issued a sweeping new advisory warning against travel to mainland China and Hong Kong, citing the risk of “arbitrary detention“ and “arbitrary enforcement of local laws.”

The advisory is likely to heighten tensions between the sides that have spiked since Beijing’s imposition on Hong Kong of a strict new national security law in June that has already been met with a series of U.S. punitive actions.

The statement warned U.S. citizens that China imposes “arbitrary detention and exit bans” to compel co-operation with investigations, pressure family members to return to China from abroad, influence civil disputes and “gain bargaining leverage over foreign governments.”

“U.S. citizens travelling or residing in China or Hong Kong, may be detained without access to U.S. consular services or information about their alleged crime. U.S. citizens may be subjected to prolonged interrogations and extended detention without due process of law,“

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Mansion Global Daily: Rethinking Design for a Post-Covid World, Home Foreclosures Soar in China, and More

Developers Globally Are Delaying Projects and Rethinking Design Following Coronavirus

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NEWS BITES

Canadian Home Sales, Prices Hit Record Highs for August

Home sales and home prices in Canada reached record highs for the month of August, according to data from the Canadian Real Estate Association (CREA). While increases were uneven nationally, with the Greater Toronto Area and the Greater Vancouver Area driving the bulk of the boost, overall across the country, home sales jumped 33.5% in August year-over-year

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Blackstone’s China Real Estate Head Tim Wang Leaves After 10 Years

(Bloomberg) — Tim Wang, a senior managing director at Blackstone Group Inc., is leaving after 10 years at one of the world’s biggest alternative asset managers, people familiar with the matter said.



a close up of a sign: A sign of Blackstone Group LP


© Bloomberg
A sign of Blackstone Group LP

Wang will remain with the New York-based firm until end of the year, one of the people said, asking not to be named discussing a private matter. Wang couldn’t be reached for a comment and a Blackstone spokeswoman declined to comment.

Earlier this year, Blackstone dropped a plan to buy assets from Soho China Ltd. amid concerns over the impact of the pandemic and financing, people familiar said at the time.

Wang joined Blackstone in 2010 and has been involved deals including the $400 million purchase of a 40% stake in SCP Co., a Shenzhen-based shopping mall developer, and the $1.2 billion acquisition of a Shanghai mall and office towers

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