Property Bonds Plunge Most Since 2008 on Curbs: China Credit
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China’s property company bonds are delivering the biggest losses in the world among developers this quarter amid speculation the banking regulator may close another avenue of funding.
Dollar-denominated debt of Evergrande Real Estate Group Ltd., Hopson Development Holdings Ltd. and other Chinese homebuilders rated below investment grade has plunged 19.9 percent since June 30, the biggest quarterly decline since the last three months of 2008, according to Bank of America Merrill Lynch data. Junk bonds sold by U.S. homebuilders, including Beazer Homes USA Inc., lost an average 7 percent, data show.