Who's Worried About Wanda? Debt Prices Show Divide in Reading Risk
- Gap between onshore and offshore yields exceeds 2017 average
- Offshore holders less sensitive to political risks: Nomura
Buildings are under construction, seen from a building at the Dalian Wanda Center, a property owned by Dalian Wanda Group, in Dalian, China, on Friday, Sept. 13, 2013. Goldman Sachs Group Inc. this month raised its estimate for China's economic growth for the third and fourth quarters, citing improving global demand and a stronger-than-expected domestic industrial recovery.
Photographer: Tomohiro Ohsumi/BloombergDalian Wanda Commercial Properties Co.’s onshore bondholders appear more anxious about the developer’s future than their offshore counterparts, debt prices suggest, highlighting investors’ uncertainty about how Chinese authorities will deal with the company.
The interest-rate gap between the two type of notes has widened recently, with the developer’s onshore debt yielding more than 3.5 percentage points higher than offshore bonds of similar maturity. That compared with the average difference of about 1.9 percentage points for this year, Chinabond and Bloomberg-compiled data show.