New World's Distress Worsens After Shock Delay on Bond Interest
Hong Kong developer New World Development Co. is sliding deeper into distress after jolting investors by delaying interest payments on some bonds, marking the latest flashpoint in a years-long crisis in China's property market.
New World, which is grappling with HK$210.9 billion ($26.9 billion) of liabilities, said in a filing late Friday that it's planning the deferment for coupons on four perpetual notes. In total, that means it's postponing $77.2 million of debt obligations, according to Bloomberg calculations.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
12 minutes ago
- CNBC
Sharkninja CEO: All of production can be made outside of China by yearend
Mark Barrocas, Shark Ninja president and CEO, joins 'Power Lunch' to discuss how the company's supply chain is shifting, how long it'll take to get operations insulated from China-U.S. trade tensions and much more.
Yahoo
16 minutes ago
- Yahoo
Indiana comptroller calls for SEC to delist Chinese companies
Comptroller Elise Nieshalla testifies before the Senate Elections Committee on Monday, Jan. 13, 2025. (Leslie Bonilla Muñiz/Indiana Capital Chronicle) Indiana, alongside 20 other states, penned a letter last month urging the Securities and Exchange Commission to investigate delisting China-based companies on U.S. stock exchanges 'to protect American investors.' Indiana Comptroller Elise Nieshalla and other state financial officers said there is a growing risk posed by the China-based companies due to Chinese Communist Party interference and widespread failures to meet U.S. transparency, accounting and auditing standards. 'As stewards of invested public funds, we have a responsibility to protect our beneficiaries from foreign entities to seek to exploit our capital markets while evading accountability,' Nieshalla said in a press release. CONTACT US The letter highlights the Chinese Communist Party's crackdown on independent due-diligence firms and points to findings by the Public Company Accounting Oversight Board that revealed auditing failures among Chinese companies. It also states that the CCP's systematic use of Variable Interest Entities — an organization that is controlled through contractual agreements rather than direct ownership — prevents U.S. investors from owning the company. The state financial officers also direct the SEC to investigate potential violations of the Securities Exchange Act, including disclosure of controls and procedures, internal financial reporting mechanisms, falsified accounting records and manipulative or deceptive practices. They alleged that the CCP's efforts to suppress transparency exacerbated these issues. 'As state financial officers, part of our responsibility is to ensure that the American people's finances – and our American financial system – are protected from foreign actors who mean to do us harm,' the signatories said in the letter. Indiana has recently purged Chinese companies from state investments. In 2023, legislation was passed that required the Indiana Public Retirement System to divest from any entities that do military or intelligence work or are controlled by the Chinese government. Within a year, INPRS eliminated its $1.2 billion worth of investments in Chinese entities. Delisting-Letter SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
CBS News
32 minutes ago
- CBS News
How much does a $400,000 annuity pay per month?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. The monthly payments on a $400,000 annuity could be substantial, providing you with a guaranteed income stream during retirement. Getty Images After years of diligently saving, watching markets rise and fall and checking retirement calculators with cautious optimism, many near-retirees now face the real challenge: turning savings into sustainable income. At that point, it's no longer just about growing your money, after all. It's about making it last. And, that shift in mindset has become even more critical in today's climate. After all, inflation may be cooling, but it's still eating into fixed budgets. Market volatility continues to rattle investors. And with people living longer than ever, the fear of outlasting your savings is very real. That's why more Americans are looking to annuities — not as flashy investments, but as practical tools for income stability. These financial products, sold by insurance companies, offer guaranteed monthly income in exchange for a lump-sum payment. Unlike the ups and downs of stocks or bonds, annuities can give retirees a level of financial consistency that's hard to come by elsewhere. But what kind of monthly income can you actually get from a larger investment, like a $400,000 annuity? Find out how to add an annuity to your retirement plan today. How much will a $400,000 annuity pay per month? So, what does a $400,000 annuity really pay? The answer depends on a few key factors, including your age, gender and the type of annuity you choose. That said, it's important to understand the range of potential monthly payouts, as that information can help you decide if locking in guaranteed income is the right move for your retirement plan. Here's a closer look at what you might earn each month from a $400,000 annuity, according to an analysis of Cannex data by Male, age 60 : About $2,362 per month : About $2,362 per month Female, age 60 : About $2,289 per month : About $2,289 per month Joint life, age 60: About $2,105 per month About $2,105 per month Male, age 65 : About $2,590 per month : About $2,590 per month Female, age 65 : About $2,482 per month : About $2,482 per month Joint life, age 65: About $2,246 per month About $2,246 per month Male, age 70 : About $2,923 per month : About $2,923 per month Female, age 70 : About $2,763 per month : About $2,763 per month Joint life, age 70: About $2,449 per month About $2,449 per month Male, age 75 : About $3,415 per month : About $3,415 per month Female, age 75 : About $3,173 per month : About $3,173 per month Joint life, age 75: About $2,736 per month About $2,736 per month Male, age 80 : About $4,192 per month : About $4,192 per month Female, age 80 : About $3,842 per month : About $3,842 per month Joint life, age 80: About $3,202 per month These figures assume a single-life immediate fixed annuity, meaning the payments start right away and continue for the rest of your life. As shown, the older you are at the time of purchase, the higher the monthly income you'll receive because the insurance company expects to make payments for fewer years. The interest rate environment can also play a role in what your monthly payouts are. It's also worth noting that men typically receive higher payments than women since women have longer life expectancies. That means the same $400,000 investment is stretched over more years for a female annuitant, leading to slightly smaller monthly checks. And, if you opt for a joint-life annuity, which continues to pay your spouse after you die, your monthly income will be lower, as evidenced above, but it can be a good trade-off for couples who want lifetime income security for both partners. Learn more about your annuity options and get started now. Is a $400,000 annuity worth it? A $400,000 annuity isn't small change, and whether it's worth it depends, in large part, on your broader retirement plan. But for many retirees, it can offer some big advantages, including: Predictable monthly income Having a fixed amount of money arriving in your bank account every month can reduce a lot of financial stress, especially if you're nervous about withdrawing from your 401(k) or navigating stock market swings. With payments that could range from about $2,300 to $4,000 per month, a $400,000 annuity can meaningfully supplement Social Security or help cover your core expenses. Protection against longevity risk One of the biggest financial unknowns in retirement is how long you'll live. Annuities offer peace of mind because they continue to pay as long as you're alive, even if you live to 100 or beyond. That's something traditional investment portfolios don't guarantee. Freedom from market volatility Unlike individual retirement accounts (IRAs) or mutual funds, annuity payments aren't tied to how the market is performing. That makes them especially attractive when interest rates fluctuate or a market correction is looming. That said, there are trade-offs to be aware of, like: Limited flexibility : Once you invest, your money is locked in. If you need to tap that cash for emergencies, an annuity won't offer the same liquidity as a savings account or brokerage fund. : Once you invest, your money is locked in. If you need to tap that cash for emergencies, an annuity won't offer the same liquidity as a savings account or brokerage fund. Tax treatment : If you purchase the annuity with pre-tax dollars (like from a traditional IRA), your monthly payments will be taxed as ordinary income. With after-tax money, only the interest portion is taxable — the rest is a return of your principal. : If you purchase the annuity with pre-tax dollars (like from a traditional IRA), your monthly payments will be taxed as ordinary income. With after-tax money, only the interest portion is taxable — the rest is a return of your principal. Inflation risk: Most fixed annuities don't automatically adjust for inflation, meaning your buying power could shrink over time unless you specifically purchase inflation protection (which usually reduces the initial payout). The bottom line A $400,000 annuity can be a powerful piece of your retirement puzzle. Depending on your age and gender, it could deliver anywhere from around $2,200 to $3,400 in monthly income, enough to cover essentials or create some extra breathing room in your budget. Still, annuities aren't the right solution for every person. Before committing such a large portion of your savings, it's important to weigh the trade-offs, like reduced liquidity, potential tax implications and inflation risks. You should also compare the options, ask questions and consider working with an expert who can help you find the right fit.
