China Junk Bonds Sink on Wider Payment Stress: Evergrande Update
- Property shares fall; China junk notes down about 4 cents
- Developer Sinic’s rating downgraded to C from CCC by Fitch
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China’s heavily leveraged property firms saw their stocks and bonds tumble after a failure by developer Fantasia Holdings Group Co. to repay notes deepened investor concerns about the sector’s outlook.
China’s dollar junk bonds fell about 4 cents, according to traders, set for the worst drop since at least 2013. Developer Sinic Holdings Group Co.’s long-term issuer default rating was cut to C from CCC by Fitch Ratings, adding to the gloom. The Hang Seng Properties Index dropped as much as 2.2% on Tuesday after last week’s rebound.