Singapore’s Out-of-Sync Bonds Create a China Fishery Pricing Gap
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The probe into China Fishery Group Ltd. for a securities offense has wiped out some $600 million from group shares and its U.S. currency bonds. The Singapore-dollar notes have barely reacted.
Money managers say the divergence illustrates the lack of depth in Singapore’s junk bond market. The local notes of China Fishery parent Pacific Andes Resources Development Ltd. have fallen just 2.2 percent since the probe was flagged on Aug. 21, according to prices from DBS Group Holdings Ltd., which led the offering. China Fishery’s 2019 dollar bonds have lost 42.6 percent, while the group’s stock prices have plunged in both Singapore and Hong Kong.