Quote | Super Quote
Super Quote   |   Detail Quote   |   Interactive Chart   |   Transaction   |   Related News   |   Related Securities   |   Company Information   |   Dividend Records   |   Short Sell
02007 COUNTRY GARDEN
RTNominal up9.540 +0.050 (+0.527%)
Research Report

16/04/2020 14:58

Moody's changes outlook on China property sector to negative

[ET Net News Agency, 16 April 2020] Moody's Investors Service has changed its outlook
for China's property sector to negative, as coronavirus-related disruptions and slowing
economic growth are weighing on property demand and inventory levels, while offshore
funding conditions will remain uncertain.
"We expect a 5%-10% year-on-year drop in nationwide property sales this year while
inventory levels will remain high. But the rated developers should still outperform
nationwide sales growth and are generally well-positioned to withstand the weakened
business conditions," said Celine Yang, a Moody's Assistant Vice President and Analyst.
Moody's expects that property sales will increase gradually through 2020 but will still
be lower than in 2019 with weak demand, and inventory levels will decrease but stay high
amid sluggish sales.
"Meanwhile, market turbulence tied to the coronavirus outbreak is increasing risk
aversion among investors and curtailing access to offshore funding, raising refinancing
risk for some developers with weak liquidity and credit quality," said Josephine Ho, a
Moody's Vice President and Senior Analyst.
But Moody's expects most rated high-yield developers will be able to address their $92
billion in onshore and offshore bonds maturing through April 2021, including puts. Most
developers have pre-funded a large portion of their offshore maturities. They should also
retain their onshore funding access and ability to refinance the onshore maturities,
given the broadly stable onshore funding conditions.
Nevertheless, four developers accounting for 5% (US$4.2 billion) of the maturities will
face higher refinancing risk.
China's property sector consists of thousands of developers, many of which are small,
with the 70 developers that Moody's rates among the country's largest. Amid the
challenging operating environment, Moody's expects the rated developers will continue to
gain market share as small and liquidity strained developers reduce their operations or
sell assets to larger companies.
Industry outlooks reflect Moody's view of fundamental business conditions for the
industry over the outlook period. Most (78%) of the rated developers had stable rating
outlooks as of 9 April 2020, and Moody's expects most to have stable outlooks for the
remainder of 2020. However, negative rating actions are more likely than positive ones,
given the difficult operating conditions. (KL)

Remark: Real time quote last updated: 30/10/2020 17:59
  Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service
A Member of HKET Holdings
Customer Service Hotline:(852) 2880 7004     Customer Service Email:cs@etnet.com.hk
Copyright 2020 ET Net Limited. http://www.etnet.com.hk ET Net Limited, HKEx Information Services Limited, its Holding Companies and/or any Subsidiaries of such holding companies, and Third Party Information Providers endeavour to ensure the availability, completeness, timeliness, accuracy and reliability of the information provided but do not guarantee its availability, completeness, timeliness, accuracy or reliability and accept no liability (whether in tort or contract or otherwise) any loss or damage arising directly or indirectly from any inaccuracies, interruption, incompleteness, delay, omissions, or any decision made or action taken by you or any third party in reliance upon the information provided. The quotes, charts, commentaries and buy/sell ratings on this website should be used as references only with your own discretion. ET Net Limited is not soliciting any subscriber or site visitor to execute any trade. Any trades executed following the commentaries and buy/sell ratings on this website are taken at your own risk for your own account.