Multiple Hong Kong-listed real estate companies have issued mandatory convertible bonds, promoting industry transformation and risk mitigation simultaneously.

In the current deep adjustment in the real estate industry, debt restructuring has become a key measure for troubled property developers to mitigate risks. Among them, mandatory convertible bonds, with the dual attributes of "debt reduction + conversion to equity", have become a key tool in the debt restructuring plans of top property developers such as Country Garden, Sunac China, and Shimao Group, shifting the industry from "extending deadlines to survive" to "substantial debt reduction" and providing an innovative paradigm for property developers to navigate through the cycle. Interviewees pointed out that the essence of mandatory convertible bonds is an upgraded version of "exchanging time for space". The combination of "conversion to equity + debt retention" not only fits the current debt repayment ability of property developers, but also provides a choice for creditors with both security and profitability.