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Country Garden’s Downgrade Accelerates China Junk-Bond Selloff

Chinese high-yield dollar bonds fell further Thursday, hit by the country’s largest developer being downgraded to junk territory in a sign of how far sentiment in the sector has fallen.

Noninvestment-grade dollar notes from Chinese issuers dropped as much as 2 cents on the dollar, according to credit traders, adding to what’s been another run of declines for the market. Prices haven’t risen on a daily basis in nearly three weeks, according to a Bloomberg index, approaching the streak set in March. Meanwhile, high-yield notes are on pace to post losses for an eighth-consecutive week, something not done since 2013.