APAC Credit Roundup: Mainland China/HK Property, Nickel Industries

Research evidence excerpt

APAC Credit Roundup: Mainland China/HK Property, Nickel Industries

ral) is also showing signs of bottoming out on the back of J.P. Morgan Securities (Asia Pacific) Limited

strong capital market activity. In the HK Property space, we are OW on (1) Hysan: EM, Economic and Policy Research

Hysan’s earnings started to recover in 2024, and remained resilient in 2025, as higher Mahmoud Harb

rental income from its shopping malls and an increased contribution from Lee Garden (65) 6882-1640

Shanghai cushioned the downward pressure on its office space. Its HK$8 billion mahmoud.harb@jpmorgan.com

capital recycling plan should help the company accelerate its deleveraging, before Lee JPMorgan Chase Bank, N.A., Singapore Branch

Garden Eight (due for completion in 2H26) adds another new layer of earnings. We Emerging Markets Strategy

are OW on Hysan’s 7.2% perpetual (105.4 offer, 5.7% ytc, z+173). (2) New World Fariha R Ahmmed AC

Development (“NWDEVL”): NWDEVL issued a statement in May stating that it is (44-20) 7134-8537

in discussions with the Hong Kong Airport Authority (HKAA) to revisit and/or fariha.ahmmed@jpmorgan.com

J.P. Morgan Securities plc

explore any potential for changes in the contractual arrangements relating to the 11

Skies project, but that there is no agreement yet. To recap, NWDEVL won the tender

for this HK$20 billion project in 2018. Under the 40-year lease, NWDEV has For key risks and catalysts not already

committed to pay HK$1.8 billion per annum or 30% of rental income, whichever is described in this report, please refer to the

higher, to HKAA. If NWDEVL manages to renegotiate the terms for 11 Skies, it

most recent Emerging Markets Corporate

would be positive as it can potentially reduce the company’s financial commitment for

Coverage Report.