China Builders Face Defaults as Cashflow Comes Under Pressure
- Stress offers opportunities for private debt funds, PwC says
- Chinese developers sold record $76.8 billion bonds last year
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Chinese property developers, the biggest junk bond issuers in Asia, are at growing risk of default as the coronavirus outbreak squeezes funding channels, according to PricewaterhouseCoopers.
In China, 90% of apartments are sold before construction is completed, making developers “reliant on pre-sales as part of their overall financing,” PwC said in a report released in Hong Kong on Thursday.