China Credit Falls as Even Higher-Rated Builders Hit Record Lows
This article is for subscribers only.
Some dollar bonds of higher-rated Chinese developers were poised for their biggest-ever weekly drops, amid declines for many risk assets around the world, as ongoing worries about the property sector spread to stronger builders.
Notes issued by CIFI Holdings Group Co. and Country Garden Holdings Co. fell at least 16 cents on the dollar this week to hit record lows, according to Bloomberg-compiled prices, plunging toward 50 cents. For China’s junk-rated dollar bonds overall, the average yield topped 25% for the first time Thursday in a Bloomberg index. Prices were poised for a 13th consecutive daily decline Friday, a streak not seen since 2018.