HK property giant New World's shares plunge after shock delay on bond interest

Hong Kong developer New World Development is sliding deeper into distress after jolting investors by delaying interest payments on some bonds, marking the latest flashpoint in a years-long crisis in China's property market.

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HONG KONG -

New World, which is grappling with HK$210.9 billion (S$34.6 billion) of liabilities, said in a filing late on May 30 that it is planning the deferment for coupons on four perpetual notes. In total, that means it is postponing US$77.2 million (S$99.2 million) of debt obligations, according to Bloomberg calculations.

The bonds concerned slid to record lows. Its 6.15 per cent perpetual notes dropped about three cents to 23 cents on the dollar on June 2 after tumbling more than 30 cents on May 30, on pace for the lowest level since issuance.

Its 4.8 per cent perpetual securities fell 10 cents to 15.5 cents, also on track for a record low and the biggest daily decline since October 2022.