China Inc.'s $164 Billion Put Options Spark Bondholder Alarm

Guangdong Homa Appliances extended put option date by a month
More delayed redemption of puttable bonds expected: Moody’s

A women wears a bright red hat, covered with yellow stars in the style of the People's Republic of China's national flag, also known as the Five-star Red flag as she visits the Forbidden City in Beijing, China, on Thursday, July 28, 2016. As China's travel market takes off, all eyes should be on the country's roughly 400 million millennials, who will drive spending on airfare, hotels, theme parks, casinos and cruises.Photographer: Luke MacGregor/Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Bloomberg News

April 9, 2019 at 9:30 PM UTC

Updated on

April 10, 2019 at 8:12 AM UTC

This article is for subscribers only.

Pressure is building for China’s bondholders to forgo their right to be repaid early as more companies show signs of strain amid a record amount of puttable debt this year.

Pang Da Automobile Trade Co., a Chinese car dealer, sought to delay a put date on a bond for the second time in February. Jewelry maker Harbin Churin Group Jointstock Co. couldn’t make a put option payment that came due late February, while Guangdong Homa Appliances Co. extended an early payment date by a month. Jewelry wholesaler Jinzhou Cihang Group Co. said on Tuesday it also won bondholder approval to delay early redemption on a note.