Greenland Jumps in Bond Market After Saying No Longer Developer

Published 15 November 2021, 07:22:32.238 GMT

(Bloomberg) -- Chinese firm Greenland’s dollar bonds rallied Monday, following a statement late Friday that the firm would now be classified as in the “construction” rather than the “real estate” sector.

* The reclassification comes amid lingering uncertainty over recent distress in the real estate industry, and a broader rebound in Chinese junk dollar notes after signs of policy easing for the property sector

* Greenland’s 5.6% 2022 note jumped 11.2 cents to 77.6 cents, following a 4.5 cents rise on Friday, according to Bloomberg-compiled prices as of 3:08pm Hong Kong time

* Its 7.25% bond due 2022 jumped 7.8 cents on the dollar to 85.3 cents

** Both set for biggest daily increase on record

* It’ll be “difficult for other developers to follow Greenland’s example” given the company has material non-property businesses, unlike the rest of the industry peers, according to Leonard Law, senior credit analyst at Lucror Analytics Pte Ltd.

* Note: Greenland Holdings Changes Sector Classification to Construction

By Alice Huang and Olivia Tam

--With assistance from Beth Thomas