Chinese Developer Shimao Plans to Use Own Fund to Pay Back Onshore Bonds

Chinese developer Shimao Group’s flagship unit said it plans to use its own capital to meet onshore bond payments that are due in the next three months. The company is also in talks to sell its commercial and hotel assets.

The company also said it will be challenging to meet its 38 billion yuan full year sales target as sales in the first 11 month were 28.2 billion yuan. The company made these comments in a filing on Monday.

Shares of the company fell sharply this month on worries over an asset sale and cancelled apartment deals along with downgrades by credit rating agencies.