Billionaire Who Invested in Evergrande Faces Bond Exodus
- Bonds issued by Zhang Jindong’s companies have tumbled
- He agreed to forgo repayment of 20 billion yuan by Evergrande
This article is for subscribers only.
Less than two months after billionaire Zhang Jindong helped China Evergrande Group avoid a cash crunch, the founder of Suning Appliance Group Co. is getting his own reality check from the bond market.
Prices for several local bonds issued by Zhang’s companies have plunged to record lows after he decided not to demand repayment of a 20 billion yuan ($3 billion) strategic investment in Evergrande. The tycoon was among a group of investors who agreed in late September to keep their money in the developer after fears of a liquidity squeeze sent its bonds tumbling.