Developers’ Bonds Decline Amid China Housing Bankruptcy
This article is for subscribers only.
Stocks and bonds issued by some Chinese real estate companies extended a slump after the collapse of a developer stoked concern defaults are starting to mount as the economy slows and the government reins in lending.
The 8.75 percent notes due 2018 sold by Evergrande Real Estate Group Ltd., the nation’s fourth-largest developer by market value, fell 1 cent on the dollar today, sending the yield to 10.562 percent, the highest on record, DBS Bank Ltd. prices show. The yield on Agile Propery Holdings Ltd.’s February 2017 notes jumped 20 basis points to 7.459 percent, the highest since they were sold last month, according to Australia & New Zealand Banking Group Ltd. prices.