Bond yields at some of China’s biggest real estate companies are rising in a sign that fears over debt problems at leading developer Evergrande are spreading more widely through the sector.
The bonds of Guangzhou R&F, a property developer, edged lower in Shanghai on Tuesday to 60 per cent of their face value, following falls of more than 20 per cent a day earlier. The moves came after Moody’s, the rating agency, downgraded the group’s credit rating and warned over its ability to refinance.
Fantasia Group, another property developer that also faces refinancing concerns, said in a statement to the Hong Kong stock exchange yesterday evening that it had made several purchases of $6m of its own bonds, one of which matures in December and had sunk to 78 cents on the dollar.