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Shimao Default Notice Hammers Bonds, Stokes China Property Fear

  • The ‘fallen angel’ builder has fueled broader industry angst
  • Shimao has some $101 million overdue, trust firm involved says
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WATCH: Property developer Shimao has suffered its biggest-ever bond rout. John Liu reports.Source: Bloomberg
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Shimao Group Holdings Ltd., a bellwether for financial contagion in China’s embattled property industry, suffered its biggest-ever bond rout on Thursday after a creditor said one of the developer’s units defaulted on a local loan.

The Shimao unit failed to pay 645 million yuan ($101 million) of a total 792 million yuan due by Dec. 25, according to a notice sent to investors by China Credit Trust Co. The trust firm had demanded early repayment by Dec. 25 after the developer failed to meet installment requirements, according to the notice.