New World has been embroiled in turmoil as investors question its ability to cope with one of the highest debt burdens among the city’s developers.
In a dramatic bid to regain confidence, the company replaced CEO in rapid succession and sought to use US$3.8 billion ($5.06 billion) of additional properties as collateral to refinance some loans and ease liquidity pressure.
Together with its peer Sun Hung Kai Properties, the outlook of both developers could hinge on potential measures for the city’s property market, expected in a budget speech by the government on Wednesday.
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Looser restrictions to entice Chinese buyers could boost the sale of large luxury homes, said Bloomberg Intelligence.
Chart: Bloomberg
