Pressure on Chinese real estate bonds to dent supply

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By Morgan Davis
18 Feb 2021

A recent bout of volatility in the secondary trading of Chinese high yield bonds means supply from lower-rated credits is expected to remain muted over the next few weeks. While stability has returned to the debt market, investors remain cautious, writes Morgan Davis.

Chinese real estate borrowers, most of which have a high yield rating, have bombarded the offshore market with new bonds this year. The companies have raised nearly $13.72bn from 42 deals, according to Dealogic. Firms from the sector bagged $55.4bn in all of 2020.

But the onslaught of ...

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