Stressed China Builders Face $2 Billion Bond Bill This Month
- Evergrande, units have payments due as some grace periods end
- Kaisa, Yango also in focus after bonds hit distressed levels
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Who will survive in China’s property sector is becoming a key question for investors as the country’s credit market undergoes its biggest shakeout in years.
A surge in Chinese junk dollar bond yields in October, briefly reaching 20%, has made it all but impossible for stressed developers to refinance their maturing debt. Such firms have just over $2 billion of onshore and dollar-bond payments due in November, according to data compiled by Bloomberg. At least four builders defaulted last month, while China Evergrande Group twice averted that fate by paying overdue coupons at the 11th hour.