LONDON: Sharp falls in Shimao Group's shares and debt, triggered by worries over an asset sale and cancelled apartment deals, renewed concerns on Tuesday over China's property sector.
The concerns were triggered by a weekend report that homebuyers who had bought some of its apartments in Shanghai had not been able to register for an ownership transfer, as they had already been pledged to a trust."We think this could affect Shimao's image and future contract sales, particularly in a weak property market," UBS said in a research note."The company's bond maturity in January will be key to watch.
The sale price is 16 times the unit's expected price-to-earnings ratio this year, far higher than the average 10-14 times seen in recent M&A deals in the Chinese property sector, analysts at JPMorgan said.
Property Property Latest News, Property Property Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »