Author | Anjou Cao

Editor | Zhou Zhiyu

One month after announcing the third edition of the foreign debt restructuring plan, Xu Hui achieved phased results.

On May 27, Xuhui announced that further progress has been made with the Coordinating Committee, which holds about 59% of the principal amount of foreign debt, and the two sides have agreed to move forward to the next stage, including negotiations and signing a legally binding agreement.

Xuhui said that the support of the syndicate coordination committee is another major milestone in the company's search for comprehensive solutions to overseas debts. The company will continue to work with the Coordinating Committee, the bondholders' panel and their advisors to agree on the detailed arrangements for the comprehensive proposal.

Xu Hui also revealed that in addition to the main terms mentioned in the comprehensive proposal, the company will also seek loan options denominated in RMB to meet the different needs of overseas lenders.

Furthermore, the long-term loan option within the comprehensive proposal, combined with the financing support received by Xuhui from the “Real Estate Project White List” mechanism, is expected to further reduce Xuhui's overall financial costs in the future.

The capital market is looking forward to new developments in Xuhui's overseas debt restructuring. On May 27, Xuhui's stock price rose 3.61%.

Xuhui's overseas debt restructuring is progressing well. On April 29, Xuhui announced a proposal for negotiations with creditors, providing creditors with 6 options, including various combinations of principal reduction, issuance of new notes, and debt-for-equity swaps. The goal is to reduce foreign debt of about 3.3 billion US dollars to 4 billion US dollars, accounting for about half of Xuhui's foreign debt.

Yan Yuejin, research director of Yiju Research Institute, said that Xuhui's diverse debt disposal methods also showed that it fully took creditors' market preferences and needs into account and had a very good orientation.

As a representative of housing enterprises actively saving themselves, Xuhui has made frequent moves this year. On the one hand, it has promoted debt restructuring. In 2024, it has completed two domestic bond rollovers with a total principal amount of about 2,448 billion yuan. Overseas debt restructuring has made phased progress. On the other hand, efforts are still being made to improve operations and guarantee delivery. Xuhui completed the delivery of 16,000 new homes in April.

Currently, Xuhui has received financing support from the “White List” for 29 projects. Among them, Wuhu Liujin Impression added 150 million yuan in financing, and the Beijing Guoxiang Yunzhuo project received an additional 50 million yuan in additional financing on top of the previous replacement financing.

Xuhui's debt restructuring is colliding with an epic new real estate deal that came out of nowhere. On the same day that Xuhui announced the progress of overseas debt restructuring, Shanghai announced a new property market policy to ease purchase restrictions and further reduce mortgage costs.

Housing enterprises in major Tier 1 and 2 cities, including Xu Hui, are waiting for the dawn of more recovery.

CITIC Securities pointed out that in the current market environment, they are more optimistic about the investment value of housing enterprises in core cities. They have been deeply involved in Tier 1 and 2 cities for many years, have high-quality land resources and project reserves, have strong product capabilities, and have good interaction with local governments. As market demand recovers and the policy environment improves, these companies are expected to be the first to benefit.

Zhang Dawei, chief analyst at Central Plains Real Estate, said that the country's determination to promote the real estate industry and economic recovery has exceeded expectations. The new property market policy continues to give the market confidence. Overall, we can be a little more optimistic about the property market.

In the future, with the implementation of the new policy and the active promotion of financing coordination mechanisms, it is expected that the road to debt conversion for housing enterprises will be more and more smooth in the future. Xu Hui won't be too far away from the day when the overseas debt restructuring is completed.