H.K. Builders to Push Sales, Sell Shares as Loan Costs Rise
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Hong Kong builders are accelerating home sales to raise cash and may issue new shares to help finance projects as credit costs rise amid tightening liquidity at the city’s lenders, according to Barclays Capital Research.
“The cheap corporate credit enjoyed by Hong Kong developers is ending,” the brokerage’s Hong Kong-based analysts led by Andrew Lawrence and Tom Quarmby wrote in a report yesterday. “Higher funding costs are clearly a further negative for the property sector.”