Chinese Stocks, Yuan Primed for Gains on Return From Holidays
Chinese shares and the onshore yuan climbed on their return from a holiday, with sentiment boosted by Beijing’s supportive policy stance.
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Chinese shares and the onshore yuan climbed on their return from a holiday, with sentiment boosted by Beijing’s supportive policy stance.
One of China’s most-watched developers has told some investors that it readied cash for an upcoming yuan bond payment, a move that may boost a firm that’s faced concern about its liquidity amid a broader property debt crisis.
A Chinese program providing state guarantees to developer bonds will be put to the test this week, when payments come due from one of the most indebted builders.
Australia’s central bank will likely keep its key interest rate at a 12-year high and stick with it for much of the year to restrain inflationary pressures underpinned by a surprisingly tight job market.
Households go backwards in 13 developed economies as record immigration runs into a housing crisis.
Dec 17, 2019
Bloomberg News
,WeWork has obtained US$1.75 billion in new financing in a fundraising push led by Goldman Sachs Group Inc., under terms that free up a mountain of cash for the struggling office-sharing company.
The new line of credit is the first hurdle cleared by SoftBank in its pledge to put together US$5 billion in debt financing for WeWork as part of a bailout package. The move should free up roughly US$800 million in cash that WeWork had set aside to satisfy covenants on its previous credit line, according to two people with knowledge of the matter.
“We are pleased that WeWork and SoftBank Group Corp. have entered into a commitment letter with Goldman Sachs,” Erin Clark, a spokeswoman for WeWork, said in an emailed statement. WeWork won’t be required to post any cash collateral under the new deal, she said. “WeWork and Softbank are co-obligors on a senior-secured and unsecured basis, respectively.”
WeWork will be able to access the facility starting next month, Clark said. While Goldman has committed to providing capital, it’s still in the process of farming out portions of the loan to other investors.
The new credit line will replace existing facilities that total about US$1.1 billion. WeWork had about US$575 million in restricted cash, mostly tied to the letters of credit, at the end of June, according to a regulatory filing. Since then, the cash set aside has increased, one of the people said.
Bonds that WeWork issued last year to help fund its expansion have climbed more than 10 cents US this month to 81.75 cents US on the dollar, according to Trace pricing data.