Shimao Risks Rise; Economy Likely Slowed: Evergrande Update

This post was originally published on this site

https://i-invdn-com.investing.com/news/LYNXNPEC0H099_M.jpg

Economic activity in China likely slowed in November due to the worsening downturn in the property sector and still subdued consumption. Growth in fixed-asset investment probably weakened last month, according to the median estimate in a survey of economists.

Shimao’s shares dropped 12% to the lowest in almost a decade, while its bonds dropped, with one yuan note tumbling more than 50% before being suspended. The firm is looking into market rumors that caused the selloff, according to an emailed response to queries. A gauge of property developer stocks fell for a second day.

Key Developments:

China Economic Activity Likely Slowed (8:23 a.m. HK)

Economic activity in China likely decelerated in November due to the worsening downturn in the property sector and still subdued consumption.

Growth in fixed-asset investment probably weakened last month, dragged down by sluggish property investment, according to the median estimate in a survey of economists ahead of data due to be released Wednesday morning. 

Amundi Says Crackdown May Boost Funds (7:59 a.m. HK) 

China’s crackdown on the property sector, which has sparked defaults at China Evergrande Group and others, should provide a lift to stocks and bonds as investors shift away from real estate, a top executive at Amundi SA said.

“We are going to see money flowing from real estate investments to capital markets investments,” said Xiaofeng Zhong, chairman of Amundi’s business in the Greater China area. “The government is encouraging funds flowing into the financial market.”

Shanghai Shimao to Sell Assets to Shimao Services for 1.65 Billion Yuan (6:04 p.m. HK)

Shanghai Shimao Co. has agreed to sell property management assets and related value-added services to Shimao Services, another company controlled by Chinese property tycoon Hui Wing Mau, according to a statement to the Shanghai stock exchange. The deal will bring about 1.16 billion yuan ($182 million) of profit to Shanghai Shimao.

©2021 Bloomberg L.P.

Add Comment