Singapore’s City Developments Reports Loss, Mulls China Comeback

City Developments Ltd, run by Singapore’s richest property dynasty, reported a first-half loss on the fallout from the pandemic and said it is mulling a deeper China presence after being stung by write downs on an earlier investment, Bloomberg News reported. Travel restrictions caused revenues to decline at the firm’s hotel operations and investment properties, while the withdrawal of Covid tax relief plans contributed to a S$32.1 million ($23.7 million) loss in the first six months. Touching on the developer’s plans for China, chief executive officer Sherman Kwek said the world’s most populous nation is still a “very viable” market. The upbeat outlook for China underscores how difficult it is for Asia’s property developers to ignore the world’s second-largest economy. The company is still reeling from a record loss of S$1.9 billion for the last financial year, largely because of impairments from its bungled backing of Chinese developer Chongqing Sincere Yuanchuang Industrial Co. China has caused jitters among investors following a regulatory crackdown on some of the nation’s biggest tech companies, while its “Three Red Lines” requirement for property developers has tightened borrowing limits and made it harder for indebted companies to refinance. Read more.