One more Chinese developer seeks to extend debt due

[SHANGHAI] Another Chinese real-estate company is seeking a debt extension to avoid a payment failure as shockwaves from a credit crunch continue to reverberate through the country's property sector.

Guangzhou R&F Properties is asking holders of a US$725 million dollar note maturing Jan 13 to extend the due date by six months, and is offering to buy back some of the debt at a discount.

If the proposals aren't backed, the company said it might not be able to fully pay off the note.

The news comes as Shimao Group Holdings' dollar bonds sank to all-time lows despite assurances from a unit of the firm that business activities were normal.

Chinese growth slowed further in November as a worsening real-estate market slump and Covid disruptions weighed on the world's second-largest economy.

The data highlight the scale of the challenge facing the Chinese government in stabilizing the economy amid property woes.

Shimao fears may finally prompt the state to take action to rescue the sector, Bloomberg Intelligence Andrew Chan wrote in a report.

BLOOMBERG