KWG Property pulls perp, Cheung Kong goes ahead

Asian perpetual bonds hit resistance from investors this week amid a softening market. Chinese property company KWG Property last night pulled its US dollar perpetual, according to two sources.

The company had started marketing the perpetual bond, which is callable after five-and-a-half years, with an initial guidance of 10.25% on Tuesday. At the end of that day, investors were told that books were covered. It was expected to price on Wednesday, but sentiment towards perpetuals from Chinese property companies had soured by then.

This was in part due to the poor secondary performance seen by Agile Property’s bonds. The company late last week sold a $700 million...