Deals
These Chinese Developers Are Making Their Creditors Anxious
- Sunac China ’19 bond fell most since August after tech deal
- Raises questions if problems with existing business: Fidelity
Why China Builders Are Worrying Their Creditors
This article is for subscribers only.
Chinese property developers investing in new ventures outside their core business are hurting their bonds.
The notes of Sunac China Holdings Ltd and Dalian Wanda Commercial Properties Co. may come under more pressure this year as the groups branch out into non-core businesses. Purchases by highly leveraged Chinese developers unrelated to real estate raise the “knee-jerk question” of whether they might be having problems with their existing business, said Bryan Collins, a fixed-income portfolio manager at Fidelity International in Hong Kong.