China State-Owned Developers Borrow Cheaply as Peers Shut Out
- Yuan notes from builders in July had lowest yield since 2010
- Private-sector developers have seen financing channels tighten
This article is for subscribers only.
A divide in funding access is widening among Chinese developers, as most struggle to raise cash in the domestic bond market amid a deepening sector crisis while mostly state-backed builders manage to borrow at the lowest cost in 12 years.
The average coupon on builders’ yuan bonds issued last month fell to 3.32%, the lowest since September 2010 when two notes were sold, according to data compiled by Bloomberg.