Singapore developers with China exposure on firm footing

FINANCING cost is on the rise for property developers in China on continued concerns over potentially more defaults by debt-laden local players, but Singapore developers with significant China exposure - with their diversified financing sources and strong credit-worthiness - are not expected to suffer from this credit squeeze.

Ken Wong, Barclays' head of bond syndicate for Asia ex-Japan, said: "Singapore developers are larger, and have strong balance sheets. They have the benefit of financing locally in Singapore and they have the support of local banks."

He added that there was now a clear differentiation on credit, and that credit was being examined more vigorously, given the default situation in China; there will be greater differentiation between BB-rated (non-speculative) and diversified national developers on the one hand, and small localised developers on the other hand.