On the evening of August 18, CIFI HOLD GP (00884) announced that it has entered into a subscription agreement with a special purpose vehicle to facilitate the orderly implementation of the stock option under its onshore bond restructuring. Under the agreement, the company conditionally agreed to subscribe for approximately 408 million shares to be allotted and issued by CIFI.

Upon disposal of these shares, the net proceeds, equivalent in onshore funds, will be used to repay approximately RMB 600 million in onshore bonds held by bondholders who selected the stock option. According to the announcement, CIFI's overall onshore debt restructuring plan was approved by bondholders in September 2025, featuring four options: bond repurchase, stock economic benefit rights, asset-for-debt swap, and general claims.

In December of the same year, CIFI completed the bond repurchase option first, using approximately RMB 220 million to buy back onshore bonds worth about RMB 1.1 billion. This latest announcement marks the official implementation of the second option—the stock economic benefit rights option. Moving forward, CIFI will initiate arrangements for the asset-for-debt swap option as planned.

Under the asset-for-debt swap option, CIFI plans to establish a service trust backed by specific assets and corresponding earnings rights from its indirectly controlled subsidiaries. The trust will directly or indirectly hold earnings rights to specific assets owned by the issuer's controlling subsidiaries, with every RMB 100 in bond face value corresponding to RMB 40 in trust units.

The assets included in this option comprise prime properties in first-tier cities, such as the Shanghai Changshou Road CIFI Plaza and Enterprise Building commercial office project, as well as the Guangzhou Guangyu Nanfang residential project. Industry insiders note that compared with other developers that have disclosed onshore debt plans, CIFI's terms have largely reached the industry's optimal level.

Particularly regarding the asset-for-debt swap option, the RMB 40 recovery amount per RMB 100 face value stands as the highest among comparable plans. Additionally, the underlying assets are all quality projects in prime locations across first-tier cities like Shanghai and Guangzhou, demonstrating outstanding advantages in asset quality and value growth potential.