China Junk Bonds Suffer Worst Slide of 2023 as Defaults Mount
- State-backed Greenland failed to make payment on dollar bond
- Debt scare, payment uncertainties reverse last week’s rally
This article is for subscribers only.
China’s high-yield dollar bonds suffered their sharpest three-day selloff this year, with a fresh default from a state-backed developer underscoring how a liquidity crisis is worsening even for those with funding access.
Greenland Holding Group Co., which is partially owned by local government entities, has defaulted on a 6.75% dollar bond it guaranteed, according to a notice sent to bondholders and seen by Bloomberg News. That comes as state-backed Sino-Ocean Group Holding Ltd. proposed repaying a local note over one year.