Hong Kong developer NWD’s shares slump amid slow progress on cutting debt

The company’s shares have fallen 7 per cent in the new year, after having lost more than 50 per cent of their value last year. The shares dropped 2.65 per cent to close at HK$4.78 on Wednesday.

NWD, controlled by one of Hong Kong’s richest families, has made a flurry of asset disposals over the past year and sought forbearance from creditors in an attempt to lift itself out of the crisis.

“We acknowledge management [has] placed cash replenishment as their top priority, but we are yet to see any meaningful progress,” HSBC said in a report published on Monday. “We expect NWD’s share price to remain volatile as investor concerns over its liquidity [have] yet to be properly addressed.”

NWD’s net gearing ratio – a measure of a company’s indebtedness – has risen to 89 per cent from 55 per cent in June, the bank said.