China Evergrande’s stalled residential project in Henan province saw the city of Kaifeng buy 1,050 flats from the developer, as per Caixin Global. The city bought these flats in order support the ailing sector as well as to expand local supply of subsidized housing. While the total value of the sale was not known, this would lead to much needed cash inflows for Evergrande amid its current financial stress.
Evergrande’s dollar bonds were trading 0.5 points higher at ~5 cents on the dollar
Separately, Sunac China’s court hearing on a winding-up lawsuit has been adjourned by seven months, to June 2023. The wind-up petition was made by a creditor known as Chen Huaijun in early September. At the time, Sunac said that it planned to “vigorously” oppose the petition and actively work with advisers “to formulate a viable restructuring plan” by year end.
Sunac’s dollar bonds were trading flat at distressed levels of around 7-9 cents to the dollar.
