Bonds of Shimano Group Subsidiaries Rose Sharply on Reports of Promised Payments
Bonds of Chinese developer Shimano Group's subsidiaries rose sharply after reports emerged the group would makes due interest payments
Bonds of subsidiaries of Chinese real estate developer Shimano Group Holdings rose sharply in the onshore market after reports came in the group plans to replay publicly-issued debts this month.
In an announcement the group told trust firms that it plans to repay issued bonds and interests due in fourth quarter, according to reports of financial intelligence provider REDD.
It has asked trust firms to be patient and said it expects 10 billion yuan ($1.6 billion) worth of cash to be released from presale escrow accounts from Jan. 1, REDD reported.
The report also stated the group plans to pay salaries due of migrant workers before the Chinese New Year.
Bonds issued by Shanghai Shimao Co Ltd and Shanghai Shimao Construction Co Ltd, both owned by Shimao, were top gainers in Shanghai Stock Exchange’s corporate bond market on Friday morning.
Earlier Chinese authorities were reportedly loosening tighter funding policy in an effort to add liquidity to the debt burden real estate sector.
Shares of the Shimano Group had plunged sharply after worries loomed over the market over assets sales and cancelled apartment deals.