The indebted Hong Kong New World Development Company opened down 2.4% as the company denying capital injection plan

The indebted Hong Kong New World Development Company opened down 2.4% as the company denying capital injection plan

Title: New World Development Denies Capital Injection Plan Amid Debt Concerns

Hong Kong's New World Development (0017.HK) saw its shares drop by 2.4% today as the company denied reports of a potential capital injection plan. The denial came amidst ongoing discussions with Deutsche Bank AG (DBKGn.DE) about a loan facility, according to Reuters [1]. The company also confirmed it is in talks with Deutsche Bank but denied receiving any other funding proposals.

New World Development, one of Hong Kong's largest property developers, has been under scrutiny due to its high debt ratio. The company secured an $11.2 billion loan refinancing package in late June, but it still faces challenges in managing its debt and sustaining operations [2]. The company has been in talks over a potential Deutsche Bank-led loan deal, but as of late last month, no bank had committed to the deal [3].

Sources familiar with the matter revealed that the Cheng family, the controlling shareholder, was considering a HK$10 billion (US$1.3 billion) capital injection through a joint venture. The family was seeking a partner to provide a similar amount for an equity stake, with Blackstone (BX.N) and CapitaLand among those in talks [3]. However, the company has not confirmed any details about the capital injection plan.

Despite the recent loan refinancing deal, New World Development continues to face financial pressure. The company has been in talks with potential investors to provide additional funding, but it remains unclear whether the Cheng family will agree to the conditions set by these investors [3]. Some investors have asked for the family to offer its holdings in the Hong Kong-listed property firm as security or to provide dividend returns for their equity investment.

The ongoing debt crisis in Hong Kong's property sector has put New World Development under intense scrutiny. The company has been working to manage its debt and navigate the challenging market conditions. As of now, the company has not provided any updates on the progress of the Deutsche Bank-led loan deal or the potential capital injection plan.

References:
[1] https://www.reuters.com/business/finance/hong-kongs-new-world-confirms-loan-facility-talks-with-deutsche-bank-2025-09-01/
[2] https://www.reuters.com/business/finance/hong-kongs-new-world-confirms-talks-with-deutsche-bank-about-loan-facility-2025-09-01/
[3] https://www.scmp.com/business/banking-finance/article/3323918/new-world-cheng-family-weighs-capital-injection-hong-kong-developer-sources-say