Central Bank: Will urge real estate companies issuing US dollar bonds to properly handle their own debts and actively fulfill their legal debt repayment obligations

Chinese peopleBankDirector of the Department of Financial Markets, Zou Lan, said at a press conference on financial statistics for the third quarter of 2021 on October 15,real estateThe impact of corporate bond defaults and other risk events, overseasreal estateThe price of corporate dollar bonds has dropped significantly. This is a natural reaction of the market after the occurrence of a default event. There are also many cases in history.

Zou Lan gave an example, “For example, after the Huarong Group’s risk a while ago, the market’s risk aversion sentiment rose sharply, and the stock prices and bond prices of other asset management companies also fell, making refinancing difficulties. As Huarong successfully introduced In the war investment, the discount of overseas bonds quickly narrowed, and market sentiment was restored.”

Zou Lan emphasized that at present, relevant departments have paid attention to the changes in the US dollar bond market for foreign real estate companies and will urge bond issuers and theirshareholder, Strictly abide by market discipline and rules, and in accordance with the principles of marketization and the rule of law, properly handle its own debt problems, and actively perform statutory debt repayment obligations. “We have also noticed that some Chinese capitalreal estateBusiness has startedRepurchaseOverseas bonds, which reflect the confidence of companies in their own development prospects, are expected to play a positive role in alleviating market tensions and restoring market confidence. “He said.

(Source: China Securities Journal·China Securities Network)

Article source: China Securities Journal·China Securities Network

Editor in charge: DF552

Original title: Central Bank: Will urge real estate companies that issue US dollar debt to properly handle their own debts and actively fulfill their statutory debt repayment obligations