Chinese Developer Sinic Warns of Default as Hidden Risks Mount
- Sinic says it’s unlikely to pay off dollar bond due Oct. 18
- Disclosure follows Fantasia default, Evergrande uncertainty
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Sinic Holdings Group Co. has become the latest Chinese real estate firm to warn of imminent default, as rising contagion risk leaves investors guessing on who else may face a credit crunch.
The Shanghai-based developer said in a Hong Kong stock exchange filing it doesn’t expect to repay a $250 million dollar bond due Oct. 18 and that may trigger cross-default on its two other notes. The firm has $694 million in dollar bonds outstanding, according to Bloomberg-compiled data. The firm missed domestic payments in September, sparking an 87% stock plunge.