New World halts trading, weighs $3.2 billion rights issue

New World Development suspended trading in Hong Kong on Friday morning pending an announcement, and is considering a rights issue of as much as HK$25 billion ($3.2 billion) after Bain Capital decided against investing, Bloomberg reported.

Why it matters: New World is Hong Kong's most indebted major developer, and a rights issue of that size, with the controlling Cheng family taking part, would be its largest step yet to repair a balance sheet a month after a record annual loss of $3.6 billion.

Data as of Bloomberg Law report of November 12, 2026, read in full, and the opening of Bloomberg's report of the same day, read via the estate browser route before its subscription wall. The rights issue and Bain's decision rest on unnamed people familiar with the situation; New World has announced neither, and the announcement the trading suspension awaits had not been published as of this item. Developing item.

New World Development Co. suspended trading in its Hong Kong shares on Friday morning pending an announcement to investors, a month after the developer reported a record annual loss of $3.6 billion, its worst ever performance, after a writedown on an aborted deal with the Hong Kong airport. The company is considering a rights issue to shore up its finances after Bain Capital decided against investing in the property company, according to people familiar with the situation.

The rights issue could seek as much as HK$25 billion ($3.2 billion), and the Cheng family, New World’s controlling shareholder, intends to participate and inject fresh capital, the people said. The developer has been carrying a heavy debt pile that pushed it into eleventh-hour negotiations with bank lenders last year, and its shares have fallen 33 percent this year.

New World halts trading, weighs $3.2 billion rights issue

Sources