Wild Day in China Dollar Bonds Sees Record Drops, One Recovery
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Dollar bonds of two Chinese state-owned conglomerates linked to top universities plunged on Friday amid concern about their finances, before confirmation that one of them would receive funding help from Credit Suisse Group AG, helping its debt recover from the day’s low.
Tsinghua Unigroup Co.’s $750m bond due 2023 sank as low as 74.7 cents on the dollar before bouncing back to the day’s high of 84.6 cents at 3:23 pm in Hong Kong, according to Bloomberg-compiled prices. Credit Suisse has underwritten the extension of two of its bank loans, according to people familiar with the matter. Peking University Founder Group’s 2022 dollar note fell 4.5 cents to a record low of 63.2 cents on Friday.