Evergrande Market Fallout Grows as Local Unit Halts Bond Trading

Sunac leads plunge among Chinese property developer shares
Signs of real estate market slowdown are adding to concerns

WATCH: Authorities are warning major lenders that Evergrande won’t be able to make interest repayments next week. Rebecca Choong Wilkins reports.(Source: Bloomberg)

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By Sofia Horta e Costa

September 16, 2021 at 4:15 AM UTC

Updated on

September 16, 2021 at 10:28 AM UTC

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Intensifying concern over the impact of a China Evergrande Group default is rippling through the nation’s financial markets.

Developers led declines on the Hang Seng China Enterprises Index, with Country Garden Holdings Co. -- the nation’s largest developer by sales -- losing 7.2% and Sunac China Holdings Ltd. sinking 11%. This week alone the two stocks have fallen more than 21%. China’s high-yield dollar bonds fell as much as 4 cents on the dollar Thursday, according to credit traders, with those issued by Fantasia Holdings Group Co. -- a weaker-rated developer -- down about 10 cents.