BEIJING, July 23 (Xinhua) -- Real estate developers in China have issued 667.508 billion yuan of bonds at home and abroad by Tuesday this year when they face mounting pressures to repay expiry debts, reported financial data and analytical service provider Wind.com.cn.
They raised 291.045 billion yuan or 41.632 billion U.S. dollars via bond offerings abroad and 376.463 billion yuan from the bond market at home in the past days of this year ending July 21.
In the following six months, however, real estate developers will have to repay more than 45 billion yuan of bonds expiry each month.
Factually, they are expected to see increasing debt repayment pressures from 2020 in face of around three trillion yuan debts expiry at home and abroad in the following five years. Statistics with Wind showed that their overseas debts due during 2020 and 2024 might reach 198.115 billion U.S. dollars.
Since July, real estate developers have scaled up their bond issues both at home and abroad, planning to sell 22 batches or 6.615 billion U.S. dollars of bonds overseas, up for three consecutive months and marking a new high since February this year.
By Tuesday, their overseas bond issues of 41.632 billion U.S. dollars have exceeded the aggregate of 2017 and approached that of 2018.
They intended to offer 39 batches or 49.508 billion yuan of bonds in China since July, a new high since May this year.
Their 376.463 billion yuan of bond issues in China by Tuesday this year represented a 14.11 percent year on year growth. The figure is higher than the total of 2017 and near that of 2019.
According to a research report from China International Capital Corporation Limited (CICC), the country's first joint venture investment bank, real estate developers' domestic bonds, U.S. dollar-denominated bonds and real estate trust funds due this year exceed 1.5 trillion yuan this year, up more than 10 percent from 2019 and from July, domestic bonds expiry for them will surge to a peak at about 70 billion yuan a month and remain at high levels in the following months of this year.
CICC report reminds investors of potential credit risks as leading and large real estate developers boast advantages in dealing with crisis and land reserves while those with tight liquidity and less business qualifications may suffer increasing difficulties in land purchasing and housing sales. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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