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HSBC analysts have warned that New World Development (NWD) may need a comprehensive debt-reduction plan or a capital injection from the Cheng family to address a liquidity crisis, as its shares have dropped 37% since late November, losing HK$6.4 billion in market value. Despite a recent 6.3% rally, shares remain near a record low of HK$4.04. HSBC has cut its price target for NWD to HK$3.66, with a majority of analysts rating the stock as a sell, while CEO Echo Huang is focused on improving the company's financial position.
New World Development (NWD) faces a liquidity crisis, prompting analysts at HSBC to suggest a debt-reduction plan or cash injection from the Cheng family. The company's shares have plummeted 37% since late November, leading to a revised stock-price target of HK$3.66. A comprehensive deleveraging strategy is recommended to alleviate investor concerns, as NWD attempts to boost sales by pricing its residential units at multi-year lows.
UBS has ceased accepting certain bonds and shares from Hong Kong real estate developer New World Development as collateral for margin loans, following similar actions by Citigroup and HSBC. The company has faced significant financial difficulties, reporting a record net loss of HKD 19.7 billion in the 2024 financial year, attributed to its high debt of HKD 199 billion. Recent management changes, including a new CEO who resigned after two months, have added to the turmoil surrounding the firm, owned by billionaire Henry Cheng.
UBS Group has recently stopped accepting certain bonds and shares of Hong Kong property developer New World Development as collateral for margin loans, following similar actions by Citigroup and HSBC. The company, owned by billionaire Henry Cheng, has faced governance issues and reported an annual loss in 2024, compounded by a significant debt of HK$199 billion.
UBS has halted margin lending on certain securities of Hong Kong property developer New World Development, following similar actions by Citigroup and HSBC. The company, facing governance issues and a significant debt of HK$199 billion, reported an annual loss in 2024. Heir Adrian Cheng recently stepped down as CEO, with his successor resigning shortly after.
UBS has ceased accepting certain bonds and shares of Hong Kong's New World Development as collateral for loans, following similar actions by Citigroup and HSBC. The company, facing governance issues and a record debt of 199 billion Hong Kong dollars, reported a full-year loss in 2024. CEO Adrian Cheng stepped down in September, with his successor resigning shortly after.
UBS has ceased accepting certain bonds and shares of Hong Kong property developer New World Development as collateral for margin loans, following similar actions by Citigroup and HSBC. The company, facing governance issues and a significant annual loss in 2024, has the highest debt among its Hong Kong peers at HK$199 billion.
UBS has suspended margin loans on certain securities of New World Development, which is facing governance challenges following the resignation of CEO Adrian Cheng and his successor Eric Ma. The company reported an annual loss in 2024 and holds the highest debt among its Hong Kong peers at HK$199 billion ($25.61 billion).
UBS has ceased margin lending on certain securities of Hong Kong property developer New World Development, following similar actions by Citigroup and HSBC. The company, facing governance issues and a significant annual loss in 2024, has the highest debt among its peers at HK$199 billion.
In a recent town-hall meeting, Henry Cheng announced Echo Huang as the new CEO of New World Development Co., marking the third leadership change in two months. Employees expressed concerns about the company's stability amid these rapid transitions, as Huang is tasked with addressing debt and revitalizing the residential property pipeline.
Henry Cheng
People
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hsbc urges new world development to address liquidity crisis amid plummeting shares
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