‘Fallen Angel’ Shimao Shows Fragility of China Property
- Developer’s bonds subject to a dramatic selloff on Monday
- Moves come less than a week after Evergrande, Kaisa defaults
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A sudden plunge in Shimao Group Holdings Ltd.’s bonds and shares triggered renewed concern over the health of China’s property sector and threatens an already precarious rebound in the nation’s high-yield notes.
Rising anxiety over Shimao’s ability to service its debt prompted the dramatic selloff on Monday, which spread to other firms. Trading was halted in six of the company’s yuan bonds after they tumbled, with one falling more than 50%. Declines continued on Tuesday.