Loan payment

Shares and bonds of Chinese developer Shimao Group plunge after defaulted loan payment

Recasts, adds stocks, bond moves and trading halts

HONG KONG/SHANGHAI, January 7 (Reuters)Shares of Chinese developer Shimao Group Holdings tumbled on Friday and trading in some of its key unit’s bonds was halted after the company defaulted on a trust loan payment, underscoring ongoing tensions in China’s real estate sector. .

Shimao shares in Hong Kong 0813.HK fell more than 18% after markets opened on Friday, while three Shanghai stock-traded bonds issued by its unit Shanghai Shimao Co 600823.SS fell more than 20%, triggering trading pauses in what the Shanghai Stock Exchange called “abnormal swings”.

Three other Shanghai Shimao bonds fell between 13% and 14%, according to stock market data. All six bonds were last listed at distressed levels of 40-60% of face value.

The falls come after a trust company, China Credit Trust Co, said on Thursday that Shimao Group defaulted on a loan after missing a payment of 645 million yuan ($101.10 million).

Another Shimao unit, Shanghai Shimao Construction, said in a filing on Friday that it was in talks with China Credit Trust to resolve the overdue payment, and the missed payment will not expedite payment claims in the market. open bond.

($1 = 6.3797 yuan)

(Reporting by Clare Jim in Hong Kong and Andrew Galbraith in Shanghai; Editing by Christian Schmollinger and Edwina Gibbs)

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