China Developer Shimao Gets Holders' Nod to Extend Local Bond Payment

The video discusses the strategies employed by Chinese developers to manage debt, particularly the distinction between onshore and offshore debt. Developers often default on offshore debt while extending onshore debt to continue operations. This approach highlights the preferential treatment of onshore creditors and the authorities' focus on ensuring developers deliver homes and payments. However, this has led to frustration among creditors due to prolonged extensions.

What approach are Chinese developers taking regarding their offshore and onshore debts?

• Defaulting on both offshore and onshore debts

• Ignoring both offshore and onshore debts

• Defaulting on offshore debt while delaying onshore repayment

• Paying off offshore debt first

What is the impact of developers defaulting on offshore debt?

• It causes a halt in all construction projects

• It leads to immediate repayment to offshore creditors

• It allows developers to continue normal operations onshore

• It results in the liquidation of the developer

Why are authorities keen on developers continuing their operations?

• To ensure developers can pay off their offshore debts

• To reduce the number of developers in the market

• To maintain the delivery of homes and payments to workers

• To increase the value of onshore bonds

What is a key concern among some investors regarding the treatment of creditors?

• The preferential treatment of onshore creditors

• The equal treatment of onshore and offshore creditors

• The lack of any extensions for onshore bonds

• The preferential treatment of offshore creditors

What frustration is emerging among domestic creditors?

• The quick repayment of onshore bonds

• The short duration of onshore bond extensions

• The lack of any extensions for offshore bonds

• The prolonged extensions of onshore bonds