Fitch, a rating agency, released a report that put 29 private housing companies on the watch list (UCO) to reflect possible changes in their ratings, and will review all companies on the watch list in the next six months. They include Huaxing, Shouchuang Group, Hongkun Weiye Real Estate Development, China Olympic Garden (03883.HK), China Jinmao (00817.HK), China Junjun Group (01966.HK), South China City (01668.HK), Xuhui holding Group (00884.HK), R & F Real Estate (02777.HK), Guorui Real Estate (02329.HK), Kaisa Group (01638.HK), Hejing Pacific Group (01813.HK), Longguang Group (03380.HK), Green King China Real Estate (00095.HK), Longfor Group (00960.HK), Jinhui Holdings (09993.HK), Rongxin China (03301.HK), Xiangsheng Holdings Group (02599.HK), COSCO Group (03377.HK), Sunac China (01918.HK), time China Holdings (01233.HK), New Lake Zhongbao (600208.SH), Sunshine City (000671.SZ), Yuzhou Group (01628.HK), Zhengrong Real Estate (06158.HK), Zhongliang Holdings (02772.HK), etc.
The bank refers to updating the figures of enterprises in the industry, including return efficiency, cash flow, liabilities and so on. The bank pointed out that although not all companies on the list will have adjustments, and past actions have mainly downgraded by one notch, or reduced the outlook to negative, etc., if the fundamentals of issuers remain weak or liquidity deteriorates, the downgrades of some internal housing issuers may be more serious.