China Mortgage Losses Could Hit $350B and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, China’s property crisis threatens to blow a $350 billion hole in the banking system’s mortgage portfolio, a Hong Kong political figure urges the appointment of Ping An reps to HSBC’s board, and debt-stricken developer Logan Group tries a holistic approach.

China Banks May Face $350B in Mortgage Losses

China’s banks face mortgage losses of $350 billion in a worst-case scenario as confidence plunges in the nation’s property market and authorities struggle to contain deepening turmoil.

A spiralling crisis of stalled projects has dented the confidence of hundreds of thousands of homebuyers, triggering a mortgage boycott across more than 90 cities and warnings of broader systemic risks. The big question now is not if, but how much it will batter the nation’s $56 trillion banking system. Read more>>

HSBC Urged to Appoint Ping An to Its Board

A Hong Kong politician has urged HSBC to spin off its Asia business and appoint representatives of Chinese insurer Ping An to its board, as the global lender prepares to meet with Hong Kong shareholders this week.

Ping An Insurance Group, the bank’s biggest shareholder, called on London-headquartered HSBC in April to explore strategic options such as spinning off its mainstay Asian business to unlock greater shareholder value. Read more>>

China’s Politburo to Ensure Delivery of Unfinished Homes

China’s top leadership has for the first time underscored the importance of ensuring the delivery of homes, signalling the government’s commitment to avert a brewing crisis that involves creating a bailout fund to get cash-starved developers over the finishing line.

Local governments will be responsible for ensuring the delivery of housing projects, according to a statement issued Thursday after a meeting of the Politburo, the Communist Party’s top decision-making body. Read more>>

Logan Adviser Says Firm Will Take Unified Approach to Debt Issue

An adviser for Logan Group’s debt issues said the company is planning to deal with the matter in a holistic fashion, as creditors seek to salvage their investment.

The company is planning for a so-called scheme of arrangement that will take a unified approach towards handling its debt, Haitong International Securities Group said in a statement. Logan said it would treat all creditors fairly, it said in a statement sent via Haitong. Read more>>

China’s Home Sales Slump Further During Mortgage Boycotts

China’s top 100 developers saw home sales slump further in July, indicating that a widening mortgage boycott crisis emerging around the country has further weighed on buyer confidence.

Combined contract sales plunged 39.7 percent from a year earlier to RMB 523.1 billion ($78 billion), according to preliminary data compiled by China Real Estate Information Corp, as demand remained stagnant amid an economic downturn despite government efforts to stimulate purchases. Read more>>

Ascendas India Trust Distributions Up 2% on Leases

Ascendas India Trust on Monday posted a S$0.0428 distribution per unit for the first half, up 2 percent from the year-earlier period, thanks to an increase in occupancy in major tech parks.

Total property income for the half-year came in at S$103.3 million (now), up 8 percent year on year. This was driven by contributions from the aVance 6 building in Hyderabad, Building Q1 in Aurum Q Parc, Arshiya Warehouse 7, and the industrial facility in Mahindra World City, Chennai. A-iTrust also enjoyed higher utilities and car park income. Read more>>

Starhill Global REIT Sees Strong Recovery in Sales and Shopper Traffic

In the current earnings season to-date, 23 S-REITs and property trusts have released their financial results or business updates for the period ending 30 June. Another 15 trusts are expected to announce between 1 and 12 August.

Last week, 14 S-REITs and property trusts unveiled half-year or first-quarter financial results while a further four released quarterly business updates. Starhill Global REIT also announced its full-year earnings last week. Read more>>

Jinke Smart Services Shares Slump After Loan Agreement With Parent

Shares of Jinke Smart Services Group fell sharply in Monday morning trade, after the Chinese property manager said it plans to extend a loan to its parent worth up to RMB 1.5 billion ($222.4 million).

Jinke Smart’s shares slumped 33 percent to HK$10.44 ($1.33), taking year-to-date losses to 69 percent. The stock was headed towards its worst one-day percentage loss since its listing in November 2020. Read more>>

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