Goldman Raises 2023 Default Forecast for China Junk Property Bonds
- Firm reinstates original 2023 projected default rate of 28%
- More delinquencies expected amid policy uncertainty: analysts
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Goldman Sachs Group Inc. is now expecting a higher default rate for Chinese high-yield property dollar bonds, as missed payments and policy uncertainty continue to weigh on the country’s real estate sector.
The investment bank’s projection has returned to 28%, a level the firm first released in December before cutting it to 19% in February in the wake of policy-easing measures and a nascent rebound in new-home sales. The year-to-date default figure has reached 15.6%, according to Goldman Sachs, with Central China Real Estate Ltd. among the most-recent delinquencies.