Chinese property developer Sunac warns of losses for second consecutive year

The real estate developer Sunac China Holdings Ltd warned of losses for a second consecutive year as the country's property sector continued to weigh on demand for new houses and its earnings.

Over the last couple of years, property firms in China have struggled to sell new homes or sold them at lower prices than expected, with COVID lockdowns further exacerbating the woes for the sector.

Sunac is one of several developers that have missed offshore bond payments and struggled to repay debt in the past year due to slowing sales, with some now scrambling for restructuring agreements with their creditors.

China Evergrande Group unveiled plans for the restructuring of its $22.7 billion in offshore debt on Wednesday, which could set the stage for distressed rivals and shape investor sentiment on the embattled property sector.

The trading in HK-listed Sunac China's shares was suspended in April 2022. They will continue to be suspended on Thursday.