Sunac China resumes trading on the Hong Kong Stock Exchange

Sunac China, a property developer facing challenges, submitted application to the Hong Kong stock exchange to resume trading of its shares starting April 13. The company also announced that it is currently working on implementing a restructuring plan. Trading of Sunac’s shares had been suspended last year due to the delay in releasing its financial results. Last month, the company finally published its overdue interim results for 2022, which revealed a core loss of 11.06 billion yuan.

Like several other property developers in China, Sunac also faced financial difficulties in 2021 and defaulted on debt repayments after experiencing losses in the latter half of the year. In March, the company reached a deal with a group of offshore creditors to restructure $9 billion of its debt. The restructuring involved converting the debt into new notes and convertible bonds that are backed by shares of Sunac China listed in Hong Kong, as well as shares of its property management unit, Sunac Services.

Chinese property developers have faced challenges in selling new homes or have had to sell them at lower prices than anticipated over the past two years. In response, the Beijing government implemented supportive policies starting from late last year. According to industry experts, the property industry is experiencing an uneven recovery, with some developers such as Sunac and China Evergrande Group reaching debt restructuring agreements, while others are facing the possibility of delisting.

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Sunac China resumes trading on the Hong Kong Stock Exchange

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