Freddie Mac Issues Monthly Volume Summary for April 2021

Bloomberg
VW Says It’s Keeping Lamborghini After $9.2 Billion Offer Report
(Bloomberg) -- Volkswagen AG reiterated plans to maintain ownership of Lamborghini after a car magazine said it was offered 7.5 billion euros ($9.2 billion) for the brand.A Volkswagen spokesman said there’s been no change in the group’s position to retain the Lamborghini brand. Autocar reported earlier Tuesday that the company had received the offer from Quantum Group AG, a new Zurich-based holding company that has formed a consortium with London-headquartered investment firm Centricus Asset Management.VW took a step in November toward preparing Lamborghini and its Italian motorcycle brand Ducati for strategic options such as an initial public offering or sale, but announced a month later it was committed to keeping them in the fold. The assurances were made as part of a broader resolution of conflicts between Chief Executive Officer Herbert Diess and key stakeholders including labor leaders.Lamborghini is owned by the VW group through its Audi subsidiary. A spokesperson for Audi also said it is not for sale.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
5h ago
FX Empire
USD/JPY Price Forecast – US Dollar Pulls Back to 50 day EMA Before Shooting Higher
The US dollar has pulled back initially during the course of the trading session on Tuesday to show a little bit of hesitancy, but you can see clearly that the 50 day EMA has offered support.
6h ago
Bloomberg
Bitcoin ETF Backers See Canada Fund’s Slump as Reason to Believe
(Bloomberg) -- This month’s cryptocurrency meltdown has at least one bright spot for advocates of a Bitcoin exchange-traded fund in the U.S.As the price of the largest digital asset cratered, the $660 million Purpose Bitcoin ETF (ticker BTCC) in Canada -- North America’s first such fund -- moved in lockstep.That may not sound like a good thing, but it kept the ETF’s price stable relative to the value of assets it holds.The ability to keep trading without huge premiums or discounts appearing in a fund’s price is a key argument in the case for an exchange-traded crypto vehicle. In contrast to BTCC, for example, the $23.9 billion Grayscale Bitcoin Trust (GBTC) at one point traded about 21% below its net-asset value during the turmoil.Regulators have yet to approve a U.S. ETF, in part because of concerns on how a fund would be able to handle the token’s infamous volatility. But if Canada’s ETF is anything to go by, the concern might be misplaced.The reason why BTCC was able to keep its price discount to a minimum during the selloff boils down to the fact that it is an ETF. To keep its price in line with its holdings, specialized traders either create or redeem shares of the ETF to adjust the outstanding supply as demand shifts. That process doesn’t exist for trusts like GBTC, which doesn’t allow for share redemptions -- which can create dramatic dislocations.“While the recent nasty selloff in Bitcoin will likely spook the SEC, it should do the exact opposite and give them maximum confidence to approve, as it showed once again how well the ETF can handle pressure thanks to their fungibility,” said Eric Balchunas, Bloomberg Intelligence ETF analyst. Investors “deserve to get something that tracks the price well -- and ETFs have shown they are the best structure to do that.”Bitcoin has plunged over 33% so far this month, dragged down by renewed regulatory concerns from China and criticism from Tesla Inc.’s Elon Musk about its energy usage. The world’s largest cryptocurrency is hovering near $37,900 per coin, down roughly 40% from a mid-April peak.At least 11 companies are looking to launch a Bitcoin ETF in the U.S., and nine of them have filed since the end of 2020, according to a tally kept by Bloomberg Intelligence. VanEck renewed that push with a filing in late December, but the SEC has delayed a decision on its application until at least June. VanEck also filed for an ETF tracking the second-largest cryptocurrency Ether.Hopes for a Bitcoin ETF approval in 2021 have faded somewhat in the past few weeks. New SEC chairman Gary Gensler told Congress that the crypto market “could benefit from greater investor protection,” and later a letter from the Securities and Exchange Commission staff warned that Bitcoin is “highly speculative” and volatile.But Bitcoin’s turbulence shouldn’t prevent the SEC from giving the green light, according to CFRA Research’s Todd Rosenbluth.“The regulatory approval process for a U.S. Bitcoin ETF appears more focused on whether they have comfort in the risks related to Bitcoin in a fund and whether the fund could become too large to handle the lack of liquidity in the market,” said Rosenbluth, the firm’s head of ETF and mutual fund research. “I don’t think the volatility for Bitcoin impacts the decision-making process, but the fact that demand remains high could add data to support their concerns about the impact of the fund’s potential size and inability to close to new investors.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
6h ago
FX Empire
GBP/USD Daily Forecast – U.S. Dollar Is Under Pressure Against British Pound
GBP/USD settled above the resistance at 1.4150 and is testing the next resistance level at 1.4180.
15h ago
Bloomberg
Obese Pigs in China Are Fueling Relentless Slump in Pork Prices
(Bloomberg) -- Obese pigs in China are being blamed for worsening a sudden rout in the country’s pork prices.Farmers have been fattening hogs since late last year to almost double their normal weight -- roughly the size of a pygmy hippo or a female polar bear -- in the hope the animals will generate higher returns should prices rebound.Cao Tao, a pig trader in the northwestern province of Shaanxi, said many of the swine he’s buying weigh more than 200 kilograms, compared with their usual size of around 125 kilograms. “Some farmers are holding onto their larger pigs on hopes of a price rebound,” he said.Instead, Chinese wholesale pork prices have plunged more than 40% since mid-January amid sluggish demand, increased imports and panic selling by farmers after fresh outbreaks of African swine fever. Muyuan Foods Co., the country’s biggest pig breeder, said this week it’s expecting a continued drop in domestic hog prices, with the slump not bottoming out until next year or even 2023.Many farmers had fattened their pigs in anticipation of a recovery in pork prices, but the rout since February has triggered a sell-off of these large animals that may be delaying a rebound in prices, according to Lin Guofa, a senior analyst at consultancy Bric Agriculture Group.“When these farms sell together, the sell-off causes an explosive price slump,” he said. Farms in the southwest and south are still holding a large number of “cow-sized” pigs, which could be sold as the weather warms and push down prices for a while yet, Lin said.China’s hog herd was devastated by African swine fever in 2018 and, while numbers have recovered since then, a recent resurgence has driven up pork imports. The agriculture ministry said in April that the country’s pig herd may recover to usual levels by June or July, although the number of hogs available for slaughter may take another four months to get back to normal.“Super-sized” pigs are partially to blame for the drop in pork prices, Qiu Huaji, the head of swine infectious diseases at Harbin Veterinary Research Institute, said at a conference last week. A price rebound had been expected in the third quarter due to the resurgence of African swine fever cutting herds by almost half in some areas, he said.See also: China’s Swine Fever Borders to Reshape $300 Billion IndustryThe impact of the obese hogs on pork prices is also being complicated by new rules that prohibit the transport of live pigs across the boundaries of five areas. The regulations -- aimed at combating the spread of African swine fever - are reshaping the market and leading to regional price differences.Qian Xiaoyun, a farmer in the northern city of Tianjin, said her family wouldn’t be breeding larger pigs after the price slump and had sold all of their animals that weighed more than 150 kilograms. “The falling pork prices and high corn prices give poor returns on those larger hogs as they eat more,” she said.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
16h ago
Bloomberg
Boom in China Firms Listing in the U.S. Comes to Sudden Halt
(Bloomberg) -- At least three Chinese companies have put their plans to list in the U.S. on hold, heralding a slowdown in what’s been a record start to a year for initial public offerings by mainland and Hong Kong firms.A bike-sharing platform, a podcaster and a cloud computing firm are among popular Chinese corporates holding off plans for a U.S. float, put off by recent market declines, souring investor sentiment toward fast-growth companies and lackluster debuts by peers like Waterdrop Inc.Hello Inc., Ximalaya Inc. and Qiniu Ltd. are postponing plans to take orders from investors, even though the three had filed paperwork with the Securities and Exchange Commission well over two weeks ago. In the U.S., companies can kick off their roadshows two weeks after filing publicly and most typically stick to that timetable.“The recent broad market selloff, combined with the correction of the IPO market since the beginning of last month when some new issuers tanked during their debuts, may make the market conditions less predictable for newcomers who are ‘physically’ ready -- meaning they have cleared all regulatory hurdles for IPO -- to get out of the door,” said Stephanie Tang, head of private equity for Greater China at law firm Hogan Lovells. “Some participants may choose to monitor the market for more stable conditions.”The delays throw a wrench in a listings flood by Chinese and Hong Kong companies in the U.S. that already reached $7.1 billion year-to-date -- the fastest pace on record -- after booming in 2020. Demand for IPOs surged as a wave of global stimulus money, ultra-low interest rates and rallying stock markets lured investors despite Sino-American tensions and the continued risk of mainland stocks being kicked off U.S. exchanges.READ: Stock Market’s Million Little Dramas Come Down to a Supply GlutThe S&P 500 Index capped its biggest two-week slide since February on Friday amid mounting investor concern over inflation and its impact on tech and other growth stocks. China’s CSI 300 Index remains in a technical correction, having fallen 10% from a February peak, while the Nasdaq Golden Dragon China Index, which tracks Chinese companies listed in the U.S., has slumped more than 30% from its high that month.Waiting OnHello, which offers a bike-sharing platform plus electric scooters for sale, has delayed its planned launch and is still undecided on its prospective valuation given rising investor caution about new shares, Bloomberg News has reported. It had been planning to raise between $500 million and $1 billion in the offering, although the final number will depend on valuations, according to one person with knowledge of the matter.Online podcast and radio services startup Ximalaya and enterprise cloud services provider Qiniu have put their listings on hold after beginning to gauge investor interest at the end of April, people with knowledge of the matter said, asking not to be identified as the information isn’t public.The sounding out of investors, or pre-marketing process, generally comes after filing for an IPO and before formal order-taking in a roadshow. Hello declined to comment while Qiniu didn’t immediately respond to an emailed request for comment. Ximalaya’s IPO process is ongoing and the company will seek public listing at an appropriate time depending on market conditions, it said in response to questions.Weak DebutsThe poor performance of recent Chinese debutants has also sapped investor confidence. Insurance tech firm Waterdrop has plunged 38% from its offer price since going public earlier this month. Onion Global Ltd., a lifestyle brand platform, has fallen more than 8% below its IPO price.In fact, almost 59% or specifically 20 of the 34 Chinese firms that have listed in the U.S. this year are under water, data compiled by Bloomberg show, among them the two largest IPOs -- e-cigarette maker RLX Technology Inc. and online Q&A site Zhihu Inc. Of the ones that listed in 2020, just 40% are trading below their IPO prices.The recent volatility in global markets has spooked U.S. companies as well. They have also been delaying floats or facing weak debuts.For some, the current challenges faced by Chinese listing hopefuls are likely to be transitory, with the hotly-anticipated IPO of ride-hailing giant Didi Chuxing Inc., which has filed confidentially for a multibillion-dollar offering, set to prove the real test of investor appetite for the China story.Apart from Hello and the two other firms that are said to delay IPO plans after kicking off their pre-marketing process, Chinese road freight transport platform ForU Worldwide Inc., which filed for a U.S. offering on May 13, and online education company Zhangmen Education Inc., which filed on May 19, are waiting in the wings though they have yet to pass the two-week hallmark.“There is a natural strong growth in China which international investors will still want to invest in over the longer term,” said Gary Dugan, chief executive officer at the Global CIO Office in Singapore.(Updates prices throughout, adds more details in the second-last paragraph.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
19h ago
Bloomberg
Erdogan Reshuffles Central Bank Again With New Deputy
(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.Turkey’s President Recep Tayyip Erdogan appointed a new deputy governor at the country’s central bank, tapping an economist and long-serving member of the institution in his latest leadership rejig.While Erdogan’s previous sudden decisions to swap out senior positions at the central bank jolted markets, this time the lira steadied to trade 0.1% stronger against the dollar as of 10:05 a.m. local time, following only a brief drop.Semih Tumen, a labor economist and professor of economics at Ankara-based TED University, was named to the role early on Tuesday, replacing Oguzhan Ozbas, according to a decree published in the Official Gazette.Read more: Erdogan Ousts Central-Bank Head, Installs Interest-Rate AllyThe move comes two months after Erdogan fired Naci Agbal, the bank’s third governor in less than two years, sending Turkish markets into a nosedive. Erdogan, who holds unorthodox theories about monetary policy and its impact on inflation, also replaced deputy governor Murat Cetinkaya in March.Tumen has worked in different roles at the central bank for 16 years until 2018, leaving the monetary authority after serving as a director general in charge of the structural economic research department. Since then, he’s been an adviser at the Turkish presidency’s human resources office.Four of seven members of Turkey’s rate-setting committee now have less than a year of experience at their jobs, including new Governor Sahap Kavcioglu.The decision to fire Agbal, who had sought to restore the central bank’s credibility, had set off a swift reversal of investor enthusiasm. The new governor has pledged policy continuity after his appointment and kept interest rates unchanged for a second month in May.Inflation, LiraStill, annual inflation is near a two-year high and the lira has lost about 14% against the dollar since Agbal was ousted. Public support for Erdogan’s ruling AK Party meanwhile hit a record low last month, according to prominent pollsters, amid disenchantment with the government’s handling of the economy.Ozbas, the most recently ousted deputy governor, was appointed in July 2019, when Erdogan’s son-in-law Berat Albayrak was overseeing the economy as treasury and finance minister.Last November, he criticized the central bank policies under former Governor Murat Uysal after working as his deputy, saying backdoor policy tightening toward the end of last year was “unnecessarily complicating the monetary stance.”(Updates with market reaction in second paragraph)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
13h ago
CoinDesk
Of Course China Is Anti-Bitcoin: Look What Happened to Jack Ma
China's assault on Bitcoin is part of a broader struggle to foster innovation while maintaining control, says our columnist.
22h ago
FX Empire
S&P 500 Price Forecast – Stock Markets Testing Major Figure Again
The S&P 500 has rallied quite significantly during the trading session on Monday as we continue to see upward pressure yet again.
1d ago
Bloomberg
PG&E to Sell San Francisco Headquarters for $800 Million
(Bloomberg) -- PG&E Corp. has reached a deal to sell its iconic San Francisco headquarters to real estate joint-venture Hines Atlas for $800 million as the utility giant moves to cut costs after it emerged from bankruptcy last year.PG&E, which plans to move to Oakland next year, needs approval from state regulators to sell the 1.7 million-square-foot (158,000-square-meter) complex, which includes 77 Beale Street and 245 Market Street, according to a statement Monday.The sale comes as office markets around the globe have been battered by the coronavirus pandemic. One broker estimated in 2019 that PG&E’s headquarters could bring in more than $1 billion. The utility giant is one of the most high-profile companies to leave San Francisco for Oakland, a less expensive city located across San Francisco Bay.Nearly a dozen bids were submitted for the property, according to a person familiar with the matter. That level of interest suggests real estate investors are willing to bet on a rebound for office demand in the city.“It’s a fantastic bet on San Francisco,” said J.D. Lumpkin, executive managing director at commercial real estate brokerage Cushman & Wakefield in San Francisco, who wasn’t involved in the deal. “While San Francisco has taken its lumps through Covid, perhaps more than other cities, there’s a lot of evidence that we will rebound over the next two or three years.”PG&E didn’t immediately respond to a request for comment about the bids. The company’s shares rose as much as 2.1% Monday.Unlike some other large property sales in San Francisco since the pandemic, the complex will require a substantial amount of renovation. It also doesn’t have a tenant in place, so the buyers will have to fill it in a few years once the redevelopment is finished.Also See: KKR Said to Buy $1.08 Billion San Francisco Dropbox OfficesSan Francisco’s overall office vacancy rate in the first quarter shattered the previous record high hit during the dot-com bust at the turn of the century, according to CBRE Group Inc. That’s pushed rent down and weighed on the value of buildings.The sale price is about $200 million less than expected, Citigroup Inc. utility analyst Ryan Levine wrote in a research note Monday. That raises the prospect that PG&E may need to raise equity this year, he said.Offset BillsPG&E intends to distribute about $400 million from its gain on the sale to customers over five years to offset bill increases as it invests in safety and operational improvements. In an added benefit, most PG&E workers will have shorter commutes to their new office, the company said.CBRE’s San Francisco Capital Markets team brokered the deal.PG&E filed for bankruptcy in early 2019 after collapsing under liabilities from wildfires sparked by its equipment. Though the company exited Chapter 11 last year, it remains burdened by about $42 billion of debt, raising concerns about its financial durability and ability to make the investments required to fire-proof its grid.Hines is one of the biggest private real estate investors and managers in the world, according to its website. Hines Atlas is a joint venture between Hines and another investor, a Hines spokesman said. He declined to name the other investor.(Adds details of bid beginning in fourth paragraph.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
1d ago
CoinDesk
3 Things You Need to Know About China’s Crypto Crackdown
The crackdown notice from the State Council has sent shockwaves across the crypto industry in China.
23h ago
Bloomberg
Belize Defaults on Debt for Second Time in a Year, S&P Says
(Bloomberg) -- Belize is on course for its second default in less than a year after missing an interest payment, triggering a downgrade by S&P Global Ratings.The Central American nation was cut to SD, or “selective default,” from CC by S&P on Monday after failing to make a $6.5 million interest payment on its $526.5 million so-called superbond due in 2034. It marks the country’s fifth restructuring or default event in the past 14 years.“We do not expect the missed interest payment to be made during the stated 30-day grace period, since the Belizean government recently announced a consent solicitation seeking to extend the grace period applicable to the May 20 coupon to Sept. 19,” Mexico City-based analysts Omar De la Torre and Livia Honsel wrote in a statement announcing the move.The nation’s 2034 notes were little changed near 41 cents on the U.S. dollar as of 10:20 a.m. on Tuesday.In February, the rating company warned that Belize would struggle to stay current on payments, and by the following month, the government said it was looking to engage bondholders in restructuring negotiations. Since then, Belize has asked its creditors to accept a 30% haircut and a maturity delay on its notes, while an investor committee complained of a lack of transparency.On May 19, the government said in a statement that it was seeking an extension to the grace period until September. Bondholders have until 5 p.m. in New York on June 1 to accept the nation’s consent solicitation.Acceptance of the request by a sufficient share of bondholders would likely be treated by S&P as a distressed exchange, given the nature of the request and relatively few options for creditors, according to the rating company.“Belize faces a constrained fiscal position and has low external liquidity,” the analysts wrote. “Social and financial pressures caused by the pandemic, given Belize’s precarious economy and health system, have shifted the government’s policy priorities and weakened its capacity to pay its debt service.”S&P announced its decision after the bond market close on Monday.(Updates pricing in fourth paragraph; adds S&P comments in seventh.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
7h ago
Reuters
VW says Lamborghini is not for sale after reported $9.2 billion bid
The non-binding offer sets out terms for the purchase of Automobili Lamborghini by Switzerland's Quantum Group AG, which has formed a consortium with London-based investment firm Centricus Asset Management, Autocar reported. The report, citing offer documents, also said that the consortium would include job assurances for existing Lamborghini employees for up to five years and the creation of 850 new jobs.
7h ago
Reuters
Singapore clears LSE deal for Refinitiv after FX pledge
Singapore's competition authority has approved the London Stock Exchange Group's $27 billion acquisition of data and analytics company Refinitiv provided the bourse continues to offer certain foreign exchange benchmarks to rivals. The Competition and Consumer Commission of Singapore (CCCS)gave the conditional approval after examining whether the deal, which transforms the 300 year old bourse into a one-stop shop for data, trading and analytics, threatened competition in the currency market. The LSE has committed to making Refinitiv's WM/Reuters foreign exchange benchmarks available to existing and future customers to provide index licencing services or clearing services in Singapore, CCCS said in a statement, adding that the commitment, effective from Monday, was for 10 years.
1d ago
Barrons.com
4 Little-Known Cryptocurrencies That Beat Bitcoin During the Crash
Polygon, Helium, Celsius, and Maker may not be household names, but they are being explored as potentially useful technologies.
21h ago
Reuters
Fed's Brainard says central bank stepping up exploration of digital dollar
(Reuters) -Growing digital currency options could lead to a "fragmentation" of the payment system that poses financial risks for households and businesses, Federal Reserve Governor Lael Brainard said on Monday in a speech that outlined the major policy questions the Fed will need to address as it explores the potential development of a digital version of the U.S. dollar. As the holder of the world's reserve currency, the United States must be highly involved as digital payments become more common and other countries develop digital currencies that can be used to send money across borders, Brainard said. "The Federal Reserve is stepping up its research and public engagement on a digital version of the U.S. dollar," Brainard said in remarks made during a virtual conference organized by CoinDesk.
1d ago
FX Empire
NVIDIA Split Announcement Raises Red Flag
The systems chip manufacturer announced a four-for-one stock split on Friday morning, effective on July 20th.
1d ago
Bloomberg
Canadian Banks Lean on Capital Markets With Loan Growth Muted
(Bloomberg) -- Canada’s banks are relying on their capital-markets divisions to crank out profit growth while their core lending businesses remain hampered by the country’s delayed reopening.Bank of Montreal kicks off the fiscal second-quarter reporting season on Wednesday, with Canada’s six largest banks projected to post adjusted earnings that more than doubled from a year earlier, according to analysts’ estimates compiled by Bloomberg. That’s mostly because profit in the year-earlier period plunged as the lenders set aside record amounts of capital to absorb defaults they were bracing for. Compared with the fiscal first quarter, the banks’ adjusted earnings are expected to fall 8.4% on average.While a wave of pandemic-related loan losses has largely failed to materialize, the banks haven’t seen much lending growth either. Canada’s hot housing market has bolstered mortgage businesses, but the country’s slower vaccination rollout and prolonged lockdowns have held back business loans as well as spending on high-margin consumer credit cards.“As the economy comes back in the fall and into next year, that’s going to be beneficial in terms of a lot of those business lines, and you’re going to see more business-loan growth over the balance of this year and into next year,” Mike Clare, who helps manage C$1.8 billion ($1.5 billion) as a portfolio manager at Brompton Group in Toronto, said in an interview. Brompton has shares of all of Canada’s Big Six banks. “Mortgages have been strong, but some other areas of consumer loans have been a bit weaker.”The banks’ capital-markets units have helped fill the void, generating record profits as volatile markets kept their trading desks humming and cash-seeking corporations turned to them for equity and debt sales.Canadian merger-and-acquisition activity got off to a record start this year, adding an infusion of advisory fees to continued strong results from trading and capital-raising. Capital markets-related revenue for the Big Six may increase 11% from the first quarter, Paul Holden, an analyst at Canadian Imperial Bank of Commerce, estimated in a note to clients.Also hampering the main lending businesses are persistently low interest rates, which are keeping margins tight. Long-term interest rates have risen this year, and the trend should eventually help the banks’ earnings. But net interest margins -- the difference between what banks make from lending to borrowers and what they pay depositers -- should remain “flattish” this quarter, putting the onus on banks to keep costs in check, Holden said.“This is another quarter where expense management will grab a lot of attention due to challenging net interest income trends,” Holden said in the note. “We expect management teams will tightly control fixed expenses while variable compensation will likely show upward pressure due to strong capital-markets results” and rising share prices.The S&P/TSX Commercial Banks Index gained 21% this year through Monday, with Bank of Montreal up 28% and National Bank of Canada rising 31%.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
9h ago
Quartz
A luxury titan has unseated Jeff Bezos as the world’s richest person
Bernard Arnault, CEO of the group that owns Louis Vuitton and Dior, has passed Amazon's Jeff Bezos as world's richest person.
1d ago
Bloomberg
China’s Largest Listed Property Manager Raises $2 Billion
(Bloomberg) -- Country Garden Services Holdings Co. raised $2 billion, paving the way for more acquisitions as China’s largest listed property services manager seeks to reach an ambitious revenue goal.In the biggest additional fundraising in the sector, the Foshan, Guangdong-based company agreed to sell HK$10.5 billion in new shares and issue HK$5.04 billion of zero-coupon convertible bonds due 2022, exchange filings showed Tuesday. That’s more than earlier offered, according to terms for the deal obtained by Bloomberg News.Click here for more details on the transaction.The proceeds will be used for acquisitions, expansion of new businesses and general purposes. In March, President Li Changjiang said the company aimed to reach 100 billion yuan ($16 billion) in revenue by 2025, up from 15.6 billion yuan last year. Fundraising is expected to drive the target, CMB International Capital Corp. property analyst Jeffrey Zeng said. Real estate service providers, whose businesses range from housekeeping to parcel deliveries, are taking advantage of lofty valuations to raise cash and expand through takeovers, and competition has become fierce. In January， China Evergrande Group’s property services unit bought a rival for 1.5 billion yuan to help meet its ambitions of increasing profit by 50% this year.Country Garden Services announced plans in March to take mid-sized rival Sichuan Languang Justbon Services Group Co. private to expand its business. The deal would use 8.3 billion yuan, more than half of its cash buffer at the end of last year, according to CMB.While many companies are seeking to buy competitors, others are looking to sell. Chicago-based Jones Lang LaSalle Inc. is weighing a plan to offload its property management business in China for at least $500 million, Bloomberg reported last month.At HK$75.25 apiece, the share placement represents a 6% discount to the closing price of Country Garden Services in Hong Kong on Monday. The stock fell 1.8% to HK$78.60 at 11:48 a.m. on Tuesday.Country Garden Services now trades 47 times projected earnings this year, among the highest in the industry, according to data compiled by Bloomberg. Listed in Hong Kong in 2018, it’s the biggest publicly traded property management services firm, with a market value of HK$238 billion.(Updates with analyst comment in the third paragraph)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
17h ago

Symbol	Last Price	Change	% Change
FMCC Federal Home Loan Mortgage Corporation	2.0900	-0.0700	-3.24%
FMCCG Federal Home Loan Mortgage Corporation	9.75	+0.10	+1.04%
FMCCH Federal Home Loan Mortgage Corporation	9.83	0.00	0.00%
FMCCI Federal Home Loan Mortgage Corporation	9.64	0.00	0.00%
FMCCJ Federal Home Loan Mortgage Corporation	9.25	-0.44	-4.54%

S&P 500

Dow 30

Nasdaq

Russell 2000

Crude Oil

Gold

Silver

EUR/USD

10-Yr Bond

GBP/USD

USD/JPY

BTC-USD

CMC Crypto 200

FTSE 100

Nikkei 225

Freddie Mac Issues Monthly Volume Summary for April 2021

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