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China Developers Account for About Half of World’s Troubled Debt

  • The strained sector stands out in markets awash with liquidity
  • Evergrande, Kaisa top list of stressed Chinese developers
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Chinese Developer Sinic Warns of Default

In a world where central bank stimulus has wiped out most of the distress from global bond markets, the troubles of China’s property companies are standing out.

Of the $139 billion of U.S. dollar-denominated bonds trading at distressed prices, 46% were issued by companies in China’s real estate sector, according to data compiled by Bloomberg on Oct. 12, which captured bonds trading at yield premiums of at least 10 percentage points above their benchmark rates.