Key facts
- China's securities regulator is scrutinizing offshore debt-swap bonds used by distressed developers.
- Defaulted property developers are seeking to issue mandatory convertible bonds for debt restructuring.
- Country Garden Holdings Co. and Sino-Ocean Group Holding Ltd. are among the developers facing filing setbacks.
China's securities regulator has recently returned offshore filing applications from several defaulted property developers seeking to issue mandatory convertible bonds for debt restructuring, requesting supplementary materials, Caixin learned from multiple sources. This regulatory hurdle disrupts a popular strategy used by distressed builders to shed billions of dollars in foreign liabilities. Recent reports indicate that Country Garden Holdings Co. and Sino-Ocean Group Holding Ltd. are among the developers facing filing setbacks.