Skip to content

Crash in Shimao Bonds Stokes Contagion Fear, Bailout Speculation

  • Developer had been seen as one of the sector’s healthier firms
  • Shimao collapse would be ‘far worse’ than Evergrande: Lombard
Video player cover image
Shares of Chinese property developers are trading around a five-year low amid concerns over Shimao Group Holdings Ltd.’s ability to meet its debt obligations. Still, Shimao says there are no issues. Rebecca Choong Wilkins reports on “BloombergDaybreak: Asia.”

Its balance sheet is less than a third the size of China Evergrande Group’s and it doesn’t even crack the top 10 list of Chinese property companies by sales.

But for many investors, Shimao Group Holdings Ltd. has suddenly become the single biggest worry in a Chinese real estate sector with no shortage of things to worry about.