Comments on Xinyuan Real Estate’s Approval to Issue Domestic Corporate Bonds

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

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Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (December Update)

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)

Chinese ADR Buyouts in Progress (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)