No, it likely won't be
And that's not a bad thing
From the Japantimes
https://www.japantimes.co.jp/opinion/2021/11/11/commentary/world-commentary/chinas-distressed-developers/
This means that China’s regulators, as well as Agile’s bond and equity holders, don’t get to assess the full risks of the company. In November, Agile privately raised another $250 million offered by Better Hai Investment Ltd., a Cayman Island-incorporated firm. Like the first, it was underwritten by Haitong Securities Co., whose onshore unit is under regulatory probe over suspected market manipulation on bond sales. Agile did not and is not required to make any public disclosure on the deal. Phone calls to the company were not returned, nor were emails to its investor relations personnel.
Agile is by no means an exception. Undisclosed, backroom private bond deals are becoming common. Since October, Yuzhou Group Holdings Co. and Ronshine China Holdings Ltd. have closed such deals, while Fantasia Holdings Group Co. and Logan Group Co. were marketing them to investors, reported Debtwire last month.
(On Jan. 14, Ronshine issued this response to the story: “As of today, all of Ronshine China Holdings Limited’s USD high-yield bonds are issued by the listing company and disclosed in its financial statements. The terms of private placements are basically consistent with our public offerings, and there is no special arrangement of guarantee on June 30 and Dec. 31.” Logan also released a statement that it has “not marketed any ‘undisclosed, backroom private bond deals’ as mentioned by Bloomberg and Debtwire in recent media reports nor did we receive an inquiry from the latter publication on the subject.”)
China’s real estate developers have a history of using off-balance-sheet vehicles to effectively skirt regulatory scrutiny. Take joint ventures for example. In 2019, 61% of developers rated by S&P Global Ratings derived at least 30% of their sales from unconsolidated joint ventures, double 2017 levels, the agency estimates. Beijing started its corporate deleveraging campaign in late 2017.
Joint ventures are convenient veils. As long as these partnerships are not consolidated, developers can pile up debt in them without having to report the financials. The amounts involved can be significant. Shimao Group Holdings Ltd., one of the few developers that do report such dealings, is expected to receive 35% to 40% of its sales from joint ventures over the next two years, estimates S&P.
so much more in the article
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