Caixin
Jan 05, 2023 10:19 AM
CX DAILY

CX Daily: Debt-Plagued Local Financing Vehicle in China Gets ‘Unprecedented’ Extension to Repay Loans Within 20 Years

Photo: IC Photo
Photo: IC Photo

LGFV /

Debt-plagued local financing vehicle in China gets ‘unprecedented’ extension to repay loans within 20 years

A troubled local government financing vehicle (LGFV) in Guizhou, one of China’s most indebted provinces, secured approval from banks to delay repayment on 15.6 billion yuan ($2.3 billion) in loans by uniformly changing their term to 20 years.

Faced with mounting financial pressure, Zunyi Road and Bridge Construction (Group) Ltd., the largest LGFV by debt load in the southwestern city of Zunyi, announced the debt restructuring agreement Friday. The state-owned enterprise has long been instructed by the local government to raise funds to spearhead infrastructure and property investment.

FINANCE & ECONOMY

 

Brokerage /

Citic Securities cleared for new asset management unit

Citic Securities, China’s largest brokerage, won regulatory approval to set up a new asset management unit, paving the way for it to tap into the mutual fund business.

The new venture, with registered capital of 1 billion yuan ($145 million), was approved to offer securities asset management and overseas securities investment services. The unit is the 25th brokerage-backed asset management firm approved in China.

The establishment of the new asset management unit will allow Citic Securities to apply for a license to manage publicly offered funds.

Quick hit /

China’s finance minister reiterates plan for fiscal expansion

BUSINESS & TECH

The vacancy rate for prime office buildings in Guangzhou, a city of 15 million people, rose 6.4 percentage points in 2022 to 14% 

Office /

Guangzhou records first drop in leased office space in a decade

Net rental growth of prime office space in Guangzhou slipped into reverse in 2022 for the first time in 10 years, signaling cooling business activity in the southern China metropolis, according to global real estate consultancy Cushman & Wakefield.

The net leased area in Grade A office buildings in Guangzhou declined by 1,130 square meters in 2022 from 2021, Cushman & Wakefield data showed. Measured as net absorption volume, the figure is a deduction of commercial space vacated by tenants and made available on the commercial space market from total space leased up.

Movies /

China’s box office bombs despite end of ‘zero Covid’

China recorded its lowest box office takings for a New Year holiday since 2016 — despite abandoning its harsh “zero-Covid” policy — as a limited number of premieres left moviegoers with few options.

During the three-day break, which ended Monday, the country’s movie theaters raked in 553 million yuan ($80 million) in ticket sales, representing a year-on-year slump of 45.8%, according to statistics from the National Film Industry Development Special Fund Management Commission.

Chips /

Chinese Intel alternative makes consumer play with retail store

Loongson Technology Corp. Ltd., a Chinese chip architecture developer, took a major step into the consumer market by opening its first brick-and-mortar pop-up store Tuesday, according to a post on its WeChat account.

Located in a consumer electronics mall in Xi’an, Northwest China’s Shaanxi province, the store sells products based on its LoongArch chips, including laptops, desktops, workstations, storage devices and servers, as well as internet of things (IoT) products like smart blackboards and electric bikes.

Quick hits /

Evergrande vows debt payment after restructuring delay

IQiyi raises $500 million from private placement to PAG

Long Read /

With jobs at home scarce, young Chinese are heading to Africa

GALLERY

Testing measures

 

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