Debt-Laden Sunac May Be Due a Stock-Market Reality Check
The Sunac China Holdings Ltd. logo is displayed on a crane at one of the company's construction sites in Beijing, China, on Tuesday, March 10, 2015. China set the lowest economic growth target in more than 15 years and flagged increasing headwinds that include a property slump, excess industrial capacity and disinflation.
Photographer: Tomohiro Ohsumi/BloombergInvestors in Sunac China Holdings Ltd. have had no qualms pushing shares of China’s most indebted property developer up more than 460 percent this year, but have they finally reached their limit?
While the rally in Chinese stocks powered on, Sunac was a notable decliner Wednesday, retreating for the first time in nine sessions after Bloomberg reported a state-owned lender was temporarily suspending new project financing to the real estate firm. Sunac denied the claim, saying its cooperation with the lender continues as normal. The shares pared a slide of as much as 6.4 percent to remain down about 2.8 percent late-afternoon in Hong Kong, the biggest loss on a Bloomberg Intelligence index of Chinese developers.