China Property Bond Plunge Ensnares Investment-Grade Giant Vanke
- Fresh worries about Covid lockdowns are weighing on the sector
- Vanke dollar bonds on pace for biggest falls since March 2020
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Dollar bonds of Chinese developers fell across the board Tuesday, with stress spreading from junk-rated names to investment-grade peers including China Vanke Co. amid renewed concerns about more Covid lockdowns in the country.
Notes from Vanke, the country’s second-largest builder by contracted sales fell as much as 5 cents on the dollar, according to prices compiled by Bloomberg, on track for their biggest declines since March 2020. Investment-grade dollar bonds from peers Longfor Group Holdings Ltd. and Sino-Ocean Group Holding Ltd. were also poised to set record lows. Declines in high-yield notes were paced by Country Garden Holdings Co., China’s largest developer.