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China Junk Dollar Bonds Extend Record String of Quarterly Losses

  • Such notes have fallen for seven consecutive quarters
  • Global rout, repayment worries put fresh pressure on sector

Chinese high-yield dollar bonds are capping a seventh-straight quarterly loss despite government efforts to stabilize the property sector, as fresh declines the past two weeks have re-emphasized the industry’s struggles. 

The developer-dominated market for such debt has lost 9.5% since the start of July, according to a Bloomberg index, threatening to post a fifth-consecutive quarter of double-digit declines. The junk notes have dropped 8% in September and are poised to erase the largest monthly return in a decade posted in August. The bonds were slightly lower Friday morning ahead of a week-long holiday in China, according to several credit traders.