Core Viewpoint - New World Development, owned by the Cheng Yu-tung family, faces significant financial challenges following the announcement of delayed interest payments on its perpetual bonds, leading to a sharp decline in its stock price and bond values [1][3][4]. Group 1: Financial Impact - New World Development announced the deferral of interest payments on four perpetual bonds, totaling $77.2 million, causing a significant drop in bond prices to historical lows [3]. - The stock price of New World Development fell over 10%, closing at HKD 4.48, a decrease of 6.47% on the day of the announcement [3]. - Analysts predict that the delayed payments will not trigger a default but will accumulate, posing long-term risks to the company's financial health [3][6]. Group 2: Market Reactions - Morgan Stanley indicated that the decision to delay payments on preferred securities signals financial pressure, potentially affecting the company's ability to distribute dividends to equity investors [4][7]. - HSBC Global Research maintains a "reduce" rating on New World Development, citing low visibility in business recovery despite some improvement in property sales [6]. Group 3: Business Performance - New World Development reported contract sales of approximately HKD 24.8 billion, achieving over 95% of its annual sales target, with strong performance in specific projects [7]. - The company is actively managing its financial obligations, having successfully refinanced HKD 17.76 billion in existing bank loans [8].