As a result of the government measures introduced to curb borrowing, the last quarter of 2021 saw a number of Chinese property developers grappling with liquidity issues in the face of maturing offshore debt. With tens of billions in offshore debt due to mature in 2022, developers will be keenly focused on liability management this year. As a result, in an effort to improve capital structures, credit ratings and manage liquidity, we have already seen a number of issuers complete exchange or tender offers and consent solicitation exercises to amend terms and extend maturity in the offshore bond market, among other capital raising strategies. Enquiries on enforcement of security over Cayman and BVI share security and restructuring of debts have increased. Whilst there has been some easing of the government measures, we would expect these trends to continue throughout 2022 until developers can find more long-term solutions for their liquidity challenges
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