Bonds
Chinese Junk Bonds Are Rising From the Ashes of Property Crisis
- Hongqiao’s dollar bond was 10 times oversubscribed this week
- Chinese high-yield notes returned 15% in 2024, most since 2012
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Risky debt from China is back in favor, just so long as it’s not from property developers.
China Hongqiao Group Ltd., the country’s largest private aluminum producer, priced $330 million of notes at 7.05% on Monday. They were 10 times oversubscribed with more than $3.9 billion of bids and the pricing was 45 basis points tighter than initial guidance, in signs of strong demand.