Losses of investors in Chinese bonds were estimated at $130 billion
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By estimated The Financial Times and Bloomberg, investors who invested in dollar-denominated bonds of Chinese developers, have lost $130 billion. Due to the crisis in the Chinese real estate market, which is now in its second year, about two-thirds of the bonds issued have lost about 30% of their value so far. “In unfavorable market conditions and against a negative news background, it is clear that prices for many bonds (Chinese developers.— “b”) have fallen sharply since last year,” Cedric Lai, senior credit analyst at Moody’s Investors Service, was quoted by FT as saying. home sales.”
It is noted that the dollar bonds of a number of Chinese developers are now quoted at levels close to default. So, for example, bonds of a large developer Kaisa Group with a maturity on September 7 are now quoted at $0.09 per $1 par, which could bring investors a loss of $272 million on bonds worth $300 million. The bonds of the Shanghai developer Shimao are now valued at $0.1 per $1 par — the potential loss of investors on these bonds is $268 million.
The negative news background today, August 24, was reinforced by news of early investigations against current and former top managers of three development and real estate companies C&D Real Estate Group, China Resources Land, Shenzhen Talents Settlement Group. Top managers are accused of corruption, bribery and fraud.
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