Beijing, April 4 (Zhongxin Financial Reporter Zuo Yukun) Only half a month after the overseas debt restructuring briefing was held, Sunac, a leading real estate enterprise, ushered in good news.
On March 3, Sunac said in its annual report that it expects the company's shares to resume trading in April. On the evening of April 31, Sunac China issued an announcement that the resumption of trading guidelines had been met and that it had applied to resume trading on the Stock Exchange from 4am on April 4.
On April 4, Sunac China ushered in the first day of resumption of trading as scheduled. The day has finally arrived.
Screenshot from Sunac China announcement.
How does Sunac "stand up"?
From the performance of the capital market, on April 4, Sunac's opening price was HK$13.1, once climbed to HK$93.2, and as of the close, the single-day trading volume reached 88 million shares, a one-day decline of about 7.19%, closing at HK$55.46 per share, with a total market value of about HK$2.04 billion.
For Sunac's resumption of trading decline, the market also generally has expectations. The analysis points out that for suspended enterprises, the liquidity pressure of investors who have not resumed trading for a long time will often lead to a large number of sell-offs after the resumption of trading, resulting in a decline in stock prices; Another voice believes that real estate stocks have experienced a collective decline in the past year, and Sunac's resumption of trading at this time will inevitably lead to a stock price correction, which is also a normal phenomenon in the industry.
In addition, because Sunac has previously been removed from the Hong Kong Stock Connect, this part of the funds held through the Hong Kong Stock Connect can only be sold but not bought. Some funds are also unable to hold non-Hong Kong Stock Connect stocks, and the possibility of selling pressure is very high, which is expected to have an impact on short-term trends.
Looking back at the process of Sunac's real estate giant ship through the storm, there are several key time points.
In December last year and at the end of March this year, Sunac released its 12 annual results, 3 interim and full year results respectively, and all financial results stipulated in the Listing Rules were published, thus also meeting the requirements of the guidelines for listed companies. According to the financial report, as of the end of 2021, Sunac's total assets were about 2022,2022.10902 billion yuan, and its revenue in 2022 was 967.5 billion yuan.
On March 3, Sunac announced that significant progress has been made in overseas debt restructuring, and a formal restructuring plan has been issued for the overseas debt restructuring of about 28 billion US dollars. Sunac said that it reached a support agreement with a group of overseas creditors holding more than 30% of the debt, and it is expected that the plan will successfully obtain more than 75% of the approval vote, and the winding-up petition will also be revoked.
At the same time, as one of Sunac's priorities, insurance delivery is also continuing to advance. Sunac data shows that from January to March, Sunac delivered nearly 1,3 sets with an area of more than 4 million square meters; The cumulative total of the first and second batches of special loans for guaranteed delivery of buildings exceeded 600 billion, and a number of projects obtained special supporting loans for guaranteed delivery buildings.
Sun Hongbin once said at Sunac's overseas debt restructuring briefing that the company's liquidity difficulties are mainly because the inertia of pursuing scale makes the company too optimistic and aggressive in investment, but he is very confident in the gradual solution of the company's overall problems and the gradual return of business to normal.
Sun Hongbin, Chairman of the Board of Sunac China. Image source: Sunac official micro
Can it drive more housing enterprises to accelerate their debts?
Although the stock price fell on the first day of resumption, Sunac's ability to quickly complete the "breakthrough" in a short period of time to resume trading is also of great significance to the industry.
"The resumption of trading is a landmark event for Sunac to recover from difficulties and is of landmark significance to Sunac's development." Liu Shui, director of corporate research at the China Index Research Institute, affirmed this.
Trading has been suspended since April 2022, 4, and it has taken Sunac a year to get to where it is today. In the entire real estate circle, Sunac has also promoted debt restructuring and resumption of trading relatively quickly, following Kaisa and Jingrui Holdings, which resumed trading in March, Sunac became the third mainland insured real estate enterprise to resume trading this year, and the first leading real estate enterprise to achieve resumption.
With the frequent warm wind in the industry, the purchase policy is continuously upgraded and optimized, and market confidence will also increase. Wang Mengde, CEO of Sunac China, also said at the overseas debt restructuring briefing that the company will seize the market window and increase supply to promote a better recovery of sales in the second half of the year and support a faster recovery of business stability.
"The resumption of trading is only the beginning, whether it can really return to the right track in the future, but also depends on how the sales are collected, and restoring its own hematopoietic ability is the core driving force to get out of difficulties." Yan Yuejin, research director of E-House Research Institute, pointed out that this is still an important event in the real estate industry, and it further shows that active response is an important countermeasure to get out of the current round of real estate market cooling cycle and revitalize the development posture of enterprises.
Yan Yuejin said that the current real estate enterprises have accelerated the overall speed of bonding, in addition to Sunac China, China Evergrande, Xuhui Holdings, Huaxia Happiness, etc. have also announced the "debt" plan, and some real estate enterprises have also disclosed the news of the resumption of trading in the middle of the year, which will boost the real estate industry.
Liu Shui also believes that for the industry, Sunac is a leading private housing enterprise, and the successful resumption of trading has a demonstration and driving effect, which can enhance the confidence of other debt defaulting enterprises to get out of difficulties and boost the confidence of the industry.
"In the next few months, as the market stabilizes and recovers, some corporate debt restructuring has made significant progress, and more companies will resume trading, and by then, real estate enterprise risk mitigation will also achieve obvious results." Liu Shui said. (End)