FE CONSORT INTL bond prices plummet; foreign media: local small and medium-sized developers still face liquidity pressure

JP Morgan predicts that Hong Kong property prices are expected to rise by up to 15% this year. According to Bloomberg, although there are signs of recovery in the Hong Kong real estate market, some local small and medium-sized developers still face new liquidity pressures, making their situation more unstable compared to larger companies in the industry. The report states that small and medium-sized developers may venture more into the commercial real estate sector, where the pace of recovery is relatively slow.

The report mentions that FE CONSORT INTL (00035.HK) bond prices experienced the largest single-day drop since the end of 2022 on Thursday (2nd), as the company previously announced that a distribution of $360 million in perpetual capital notes originally scheduled for April 18 would be deferred to the next distribution payment date. This is reported to be the first time FE CONSORT INTL has taken such action.

The report cites Zhu Lei, head of Asian fixed income at Fidelity International, stating that in contrast, smaller developers typically hold older or single-asset properties, and the valuations of these properties have significantly declined in a high-interest-rate environment