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[Standard & Poor’s: Downgraded Longfor Group’s (00960.HK) long-term issuer credit rating to “BB”, outlook “negative”]
On March 5, Standard & Poor’s downgraded the long-term issuer credit rating of Longfor Group Holdings Limited (referred to as “Longfor Group”, 00960.HK) from “BB+” to “BB”. At the same time, Standard & Poor’s downgraded the company’s long-term issuance rating on senior unsecured notes from “BB” to “BB-“.
Standard & Poor’s predicts that Longhu Group’s total contract sales will fall further by 13% to RMB 89 billion in 2025. This forecast is based on Standard & Poor’s estimate that the value of the company’s saleable resources in 2025 will exceed 160 billion yuan. In January 2025, Longhu Group’s contract sales fell by 36% year-on-year. Contract sales of China’s top 100 developers fell 3.2% year-on-year, according to data from China Real Estate Information Corp.
[18 Huayang Economic and Trade CP001 and 18 Huayang Economic and Trade CP002 Progress in Default: Progress in Bankruptcy Liquidation and Property Price Change Plans]
The failure of China Huayang Economic and Trade Group Co., Ltd. to pay the principal and interest of “15 Huayang Economic and Trade MTN001” on schedule constitutes a material breach of contract, triggering the cross-protection clauses of “18 Huayang Economic and Trade CP001” and “18 Huayang Economic and Trade CP002”. The latest progress shows that the company has entered bankruptcy liquidation procedures, and the manager is promoting the debtor’s property price change plan and conducting evaluation and auction of relevant assets. At the same time, litigation for cancellation of equity holding and change registration has been accepted by the court.
The “14 Huayang Economic and Trade MTN001” and “15 Huayang Economic and Trade MTN001” issued by China Huayang Economic and Trade Group Co., Ltd. failed to pay the principal and interest on schedule, constituting a material breach of contract. At present, the company has entered the consolidated bankruptcy liquidation process. In January 2025, the manager is promoting the evaluation and auction of physical assets, and has filed a case to resolve the equity holding dispute. At the same time, relevant criminal cases are in the review and prosecution stage.
[Guangzhou Hejing Holding Group: Subsidiaries have failed to pay off more than 581 million yuan of new maturing debts]
Guangzhou Hejing Holding Group issued an announcement stating that as of February 25, 2025, some subsidiaries within the scope of consolidation had new overdue debts of more than 10 million yuan, with a total amount of approximately 581 million yuan. It mainly involves overdue loans from Beijing Hongen Real Estate Trust, overdue loans from Guangzhou City Hexing Real Estate and Chengdu City Ruijing Real Estate Bank. The reason for overdue loans is that the principal and interest are not paid on schedule.
As of February 28, 2025, the overdue balance of bill acceptance by subsidiary Hubei Guanjing Real Estate Co., Ltd. was 17.5659 million yuan, and the cumulative overdue amount was 20.7982 million yuan.
Guangzhou Hejing Holdings has 4 existing bonds, with a bond stock of 3.591 billion yuan.
[20 Zhongnan Construction MTN001: Review exemption from liability for breach of contract and adjustment of principal and interest payment arrangements]
Jiangsu Zhongnan Construction Group Co., Ltd. issued a summary of the proposals on the 2025 second holders ‘meeting of the first tranche of medium-term notes in 2020. The meeting will review two proposals, one is to exempt the liability for default and cross-protection clauses of the current bond; The second is to adjust the principal and interest redemption arrangements for the current bond, extend the redemption period to March 23, 2026, and adjust the interest payment accordingly.
It was disclosed on February 26, 2025 that the principal payment of 20 Zhongnan Construction MTN002 (102001655) was deferred to August 27, 2025, which was divided into 1 phase. Interest payment is deferred to August 27, 2025 and is divided into 2 installments.
Jiangsu Zhongnan Construction has 5 existing bonds, with a bond stock of 5.065 billion yuan.
