Central China Real Estate is reported to have accepted payments for its homes in the form of garlic and wheat from farmers. As per Bloomberg, the developer offered to receive down payments in the form of wheat worth ~RMB 160,000 ($24,000) for homes in its River Mansion residential project in Shangqiu. Additionally, for a project in Kaifeng city, it accepted garlic as payment for some farmers/growers who were looking to buy homes there. This shows the extent to which some property developers have gone to attract homebuyers in the midst of the slowdown in contracted sales, the liquidity crunch and overall economic weakening. Bloomberg adds that Central China’s offer to buy wheat at RMB 4/kg was higher than the record RMB 3-3.1/kg that China’s state stockpiling company was purchasing the grain for earlier this month. For garlic, it offered to pay RMB 10/kg in May vs. the wholesale price of RMB 6.92/kg as of June 10.
Central China’s dollar bonds were trading mixed – its bonds due beyond 2024 are trading at about 41 cents on the dollar while its 2023s are over 50 cents and its August 2022s are at 82.
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