China Developer Yuzhou’s Woes Deepen After Profit Warning
- Yuzhou Group shares and dollar bonds have tumbled this week
- Developers among firms most likely hit by drive to deleverage
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Concerns about Yuzhou Group Holdings Co.’s financial health are intensifying, after a profit warning from the Chinese property developer sent its bonds and shares tumbling this week.
The company’s Hong Kong-listed shares slumped a record 23%. It warned Sunday that last year’s earnings likely dropped “significantly,” and then said Thursday that it was barely profitable in 2020. Its dollar bonds have also fallen sharply, with an 7.85% note due 2026 plunging 31 cents on the dollar to 74.6 cents and poised for a record closing low, according to prices compiled by Bloomberg.