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Potential Evergrande Deal Threatens to Strain Finances at Hopson

Oct. 5, 2021, 9:08 AM

Hopson Development Holdings Ltd. faces a higher debt load and increased refinancing risks if it follows through on a reported purchase of China Evergrande Group’s property management unit, analysts said.

Hopson’s 6.8% note due in 2023 fell 0.7 cent to 89.3 cents on the dollar Tuesday after declining a record 5.1 cents the previous day, Bloomberg-compiled prices show. A Chinese media platform reported early Monday that Hopson agreed to buy the Evergrande business.

“Investors are very skeptical about anything developers do to hurt the health of their balance sheet,” said Raymond Cheng, head of China and Hong Kong ...