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Chinese Developer Bond Rout Deepens on Hidden Debt Concerns

  • Logan bonds sink to record after report of debt obligations
  • Tranparency issues are undermining investor confidence
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WATCH: Mounting concerns about hidden debt is sending Chinese developer bonds plummeting. Bloomberg’s Rebecca Choong Wilkins reports.Source: Bloomberg
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Fresh turmoil rocked Chinese property bonds on Monday on concern over the true scale of the industry’s hidden debts, deepening a selloff among higher-rated firms.

A Logan Group Co. note due 2023 sank 14.1 cents to a record low 62.9 cents after Debtwire reported the developer could be on the hook for $812 million of guarantees on outstanding obligations due through 2023. Country Garden Holdings Co.’s bond due 2024 tumbled 12.9 cents to 67.7 cents, extending last week’s selloff for the country’s biggest developer.