<div id="readability-page-1"><div><p>[HONG KONG] Chow Tai Fook Enterprises (CTFE), the main investment arm of Hong Kong billionaire Henry Cheng’s family, is looking to refinance an around HK$7.3 billion (S$1.2 billion) loan due in June, according to people familiar with the matter, testing banks’ appetite for exposure to a firm tied to the clan’s troubled property business.</p><p>The company is in preliminary discussions with banks for a potential five-year facility, said the people, who asked not to be identified discussing private matters. Last year, the firm had to repay a separate borrowing with its own cash amid a challenging funding environment at the time, the people said. While the people declined to disclose the size of the loan, the company had one HK$7 billion facility that matured last July, according to Bloomberg-compiled data.</p><p>Chow Tai Fook Enterprises is the largest shareholder in New World Development, the cash-strapped developer that was pushed to the brink of default last year before securing a record HK$88.2 billion loan refinancing. Because of its more than 40 per cent interest in New World, CTFE’s fundraising moves are closely watched as a barometre of banks’ confidence in Hong Kong’s battered property sector. </p><p>Increasing uncertainty over fundraising prospects has added urgency to the Chengs’ efforts to bolster CTFE’s balance sheet, spurring a series of portfolio moves in recent months. In December, the family transferred a 54 per cent stake in Chow Tai Fook Jewellery Group to a unit of CTFE, according to Hong Kong stock exchange data. The same month, CTFE agreed to sell Australian power producer Alinta Energy to Singapore’s Sembcorp Industries, in a deal expected to close in the first half of this year. </p><p>The sale, along with the share transfer, could lower CTFE’s net debt-to-net asset ratio to about 29 per cent from 62 per cent as of June 2025, according to people familiar with the matter. Earlier this year, CTFE reassured banks that its financial position had been improving, with its net debt-to-Ebitda ratio falling to 3.7 times from 7.3 times, on top of higher revenue, the people said.</p><p>CTFE did not immediately respond to a request for comment.</p><div><div><div><p>SEE ALSO</p><div><div><div><div><p></p></div><p></p><h3><span>Blackstone talks on US$4 billion New World deal stall over control</span></h3><p></p></div></div><div><div><div><p><img height="3667" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/9ae031a82d32f8eedc6534a92684761bba77bf795e291b1bc09caf45508085c0/query-ZHByPTEmZj13ZWJwJnc9OTYw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="5500" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/9ae031a82d32f8eedc6534a92684761bba77bf795e291b1bc09caf45508085c0/query-ZHByPTEmZj13ZWJwJnc9OTYw"/></p></div><p></p><h3><span>Blackstone in advanced talks to be New World Development’s largest shareholder</span></h3><p></p></div></div><div><div><div><p><img height="1334" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/febf4bdd279a1bc1dff282502ded3ede42a3f426a2426e6a15b7a0c569cb480c/query-ZHByPTEmZj13ZWJwJnc9OTYw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="2000" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/febf4bdd279a1bc1dff282502ded3ede42a3f426a2426e6a15b7a0c569cb480c/query-ZHByPTEmZj13ZWJwJnc9OTYw"/></p></div><p></p><h3><span>Hong Kong builder New World makes progress escaping distress</span></h3><p></p></div></div></div></div></div><div><h3>Navigate Asia in<br/>a new global order</h3><p>Get the insights delivered to your inbox.</p></div></div><p>Hong Kong’s property sector has shown signs of a rebound recently after years of weakness. Reflecting the shift in sentiment, Sun Hung Kai Properties, the city’s largest developer, is seeking a loan of at least HK$5 billion, returning to the market after skipping its annual refinancing last year. </p><p>CTFE’s refinancing push comes as talks have stalled between the Cheng family and Blackstone over a potential capital injection for New World. The talks hit a roadblock after the Chengs grew reluctant to cede control of their real estate flagship. BLOOMBERG </p><div><p>Decoding Asia newsletter: your guide to navigating Asia in a new global order. <span>Sign up here to get Decoding Asia newsletter.</span> Delivered to your inbox. Free.</p></div></div></div>

159707

159768

00017

512200

159940

515060

<p>Chow Tai Fook Enterprises (CTFE), the investment arm of billionaire Henry Cheng's family, is seeking to refinance a HK$7.3 billion loan due in June. This move is seen as a test of banks' confidence in the troubled Hong Kong property sector, particularly as CTFE holds a significant stake in New World Development, which faced near-default last year. CTFE is in talks for a five-year loan facility and has made recent portfolio adjustments to improve its financial position, including a stake transfer and the sale of Alinta Energy. The property sector shows signs of recovery, with other developers also seeking loans.</p>

Businesstimes News

Hwabao WP CSI 800 Real Estate ETF

Yinhua CSI Interior Real Estate Theme ETF

NEW WORLD DEV

China Southern CSI All Share Real Estate ETF

GF CSI All Share Financials ETF

ChinaAMC CSI All Share Real Estate ETF

New World’s top shareholder CTFE seeks to refinance US$932 million loan