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China’s Developers Face $12 Billion in Trust Payments This Month

  • Developers have defaulted on $10 billion in trusts this year
  • Trust woes set to exacerbate liquidity squeeze for developers
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Opportunity in China’s High-Yield Property Sector: Chu

Chinese developers are facing $12 billion in trust payments coming due in December, posing a major challenge for the sector whose liquidity squeeze has spooked global markets.

The firms have already this year defaulted on more than $10 billion of these high-yielding, short-term products, which had been deemed to be a legitimate, safe and predictable place to park money for mainly wealthy Chinese and institutions. That comes on top of at least $10.9 billion of potential losses in other wealth products at developers, including China Evergrande Group, which has angered employees and tens of thousand people across China.