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China Junk Bond Selloff in New Phase With Record Fosun Rout

  • Industrial firms, Macau casino operators notes have weakened
  • Conglomerate’s bonds on pace for record declines Tuesday
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WATCH: Chinese conglomorate Fosun International’s dollar bonds are extending their decline. Rebecca Choong Wilkins reports.Source: Bloomberg
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The ongoing bond plunge for resort chain Club Med’s Chinese owner shows that financial stress among the country’s property developers is shifting to other weaker borrowers.

In a sign of contagion, prices slid Tuesday for some Chinese industrial firms’ offshore debt after a Monday selloff in Macau’s casino operators. Meanwhile, last week’s slump for conglomerate Fosun International Ltd.’s dollar bonds accelerated, with some on track for record declines.