Xinyuan announced today that it has received approval to issue up to RMB2.2Bn of domestic corporate bonds. The indicated rate of 5.5 to 7.5% falls within the range of other offshore listed B-rated Chinese property developers. My guess is that XIN will pay about 7% due to its higher than average debt level: Bond proceeds will … Continue reading Comments on Xinyuan Real Estate’s Approval to Issue Domestic Corporate Bonds
Passenger Vehicle sales in China remain strong after the 50% reduction in the purchase tax on smaller vehicles at the end of September. November sales were 23.7% higher than November 2014. 11 month YTD sales were +5.9%. The long-term outlook remains mildly favorable due to the country’s low level of vehicle ownership and rising personal incomes. Commercial … Continue reading Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (December Update)
Stabilization of the Chinese domestic markets has improved prospects for completion of a majority of the ADR buyouts announced this year. Since my last update the Wuxi Pharmaceutical buyout was approved and closed and several deals moved forward with price increases: Home Inns offer was raised from $32.81 to $35.80 Jiayuan offer was raised from $5.37 to … Continue reading Chinese ADR Buyouts in Progress (Update)
