Business

Chinese developer Shimao plans to use its own money to pay for domestic bonds According to Reuters



© Reuters. FILE PHOTO: A man walks past a wall bearing the logo of Shimao Group, with residential buildings and the Pudong financial district in the background, in Shanghai, China January 1, 2013. REUTERS/ Stringer

HONG KONG (Reuters) – The flagship unit of China’s Shimao Group said it plans to use its own capital to pay for domestic bonds due in the next three months, and it is in talks to sell its commercial and hotel properties.

Shanghai Shimao Co also said it would be difficult to meet its full-year revenue target of 38 billion yuan ($5.96 billion), as revenue for the first 11 months of the year was 28.2 billion yuan.

The company published the comments made to investors in a filing on Monday.

Shimao has seen its shares and debt plummet this month, fueled by worries about canceled property sales and apartment transactions, as well as a downgrade by rating agencies due to risk. increased financial risk.

Shanghai Shimao also raised concerns when it previously said it had sold its wealth management business to sister company Shimao Services for 1.7 billion yuan ($267 million), a valuation that some considered by analysts to be above the market average.

The company said on Monday that it paid the proceeds to develop and operate the commercial complex, not to pay off debt.

Separately, Shimao Services – the group’s wealth management arm – said in a filing on Friday that it is operating stably and will not be conducting any major asset purchases or liquidations with parent company for the next six months.

Shares of Shimao Group and Shimao Services, both listed in Hong Kong, rose more than 2% on Tuesday. Shanghai Shimao down 2%.

Shimao Group told investors in November that its revenue this year would be around 290 billion yuan due to the national credit tightening and that it would consider selling commercial properties and hotels if good price.

(1 dollar = 6.3721 yuan)

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