China’s Property Crisis Is Fueling Record Loss in BEA Debt
- Yield to call on BEA AT1 dollar debt rose by record in October
- BEA says proactively managing its China real estate portfolio
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China’s property debt crisis is deepening challenges for creditors. The latest is a record drop in bonds from a Hong Kong-based lender with a comparatively high rate of soured loans to the sector.
Almost 9% of Bank of East Asia Ltd.’s loans to Chinese property developers were likely impaired as of the end of June 30, Bloomberg Intelligence estimated based on the bank’s real estate exposure and impaired loan data. That outstrips 3-6% for major Chinese peers.