Country Garden Details Offshore Debt Restructuring
Indebted Chinese developer Country Garden has proposed restructuring terms that aims to reduce its offshore debt by up to USD11.6 billion and extend debt maturity by a maximum of 11.5 years, Yicai.com reported citing the company statement. The restructuring would help reduce the weighted average cost of borrowing from about 6% to about 2% per year. The developer has reached an understanding with a lender group made up of seven banks which holds 48% of the company’s outstanding syndicated loans totalling USD3.6 billion. By end-2023, Country Garden's total overseas interest-bearing liabilities were about USD16.4 billion, the newspaper said.
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China Eyes 4% Deficit Ratio For 2025 - Analysts
Beijing is likely to raise its deficit-to-GDP ratio to around 4% next year, after the Politburo meeting called for implementing a more proactive fiscal policy and strengthening extraordinary countercyclical adjustment this week, Yicai.com reported, citing analysts. Luo Zhiheng, chief economist at Yuekai Securities said a 4% deficit rate sends a strong signal to stabilise expectations, which directly boosts the capital market and allows the government to increase spending and alleviate local fiscal pressure quicker than issuing special treasury bonds.
China SME Index Up In November
China’s SME Development Index reached 89.2 for November, up 0.2 points from October and marking the second month of consecutive increase, the China Association of Small and Medium Enterprises (CASME) said. SME confidence continued to improve and market demand has rebounded, however policymakers must continue expanding demand and revitalizing consumption to help enterprises grow and stabilise orders, Ma Bin, executive vice-president at CASME noted.
China Export Growth Slows In November
China’s export growth slowed sharply in November to 6.7% y/y, due to base effects and diminished short-term factors behind October’s 12.7% y/y increase, according to Feng Lin, executive director of research at Orient Jincheng. November in-bound shipments fell 3.9% y/y, widening from October’s 2.3% decline, as domestic demand remained weak and firms' reluctance to increase inventory, said Zhou Maohua, researcher at Everbright Bank. However, the domestic economy continued to improve given import growth of electronic components, electromechanical products, minerals and energy was positive, Zhou noted.
