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Modern Land's dollar bond due for repayment in 2023 plunged 25% to 32.250 cents on the dollar, while Kaisa Group, which was the first Chinese property developer to default back in 2015, and Greenland Holdings, which wants to build western Europe's tallest residential building, both saw more savage selling. Shanghai Stock Exchange data showed the top five losers among exchange-traded bonds in morning deals were all issued by property firms. "We see more defaults ahead if the liquidity problem does not improve markedly," said brokerage CGS-CIMB in a note, adding developers with weaker credit ratings would find it very difficult to refinance debt at the moment. The $5 trillion Chinese property sector, accounts for around a quarter of the Chinese economy by some metrics and is often a major factor in Beijing policymaking.

8 - Central China Real Estate (0832.HK) $400 millionĭec. The logo of China Evergrande is seen at outside China Evergrande Centre building in Hong Kong, China September 23, 2021. Star stock picker Cathie Wood of ARK Invest seperately cautioned of an economic slowdown in China that could ripple through the global economy and weigh on commodity prices and growth. Mid-sized rival Fantasia (1777.HK) also missed a payment and Modern Land (1107.HK) and Sinic Holdings (2103.HK) are trying to delay deadlines that would still most likely be classed as a default by the main rating agencies. Problems have already spread well beyond just Evergrande. The IMF's report, however, said that while contagion so far has been limited to other financially weak property developers and lower-rated firms, if the situation were to "escalate, there is a risk that broader financial stress may emerge." The IMF said on Tuesday that China has the ability to address the issues linked to Evergrande's indebtedness, with the fiscal capacity and the legal and institutional tools. "I think 20 cents (for every dollar of the bonds' original face value) is more or less fair." "I don't see the recovery being particularly high," he said referring to what Evergrande bondholders would get if Evergrande gets broken up.

"It is pretty serious now and it looks like it is going to be long and drawn out process," said London-based Trium Capital fund manager Peter Kisler about Evergrande and the wider crisis. 18-19 deadline when it will be formally declared in default if it still hasn't stumped up. It has maintained radio silence for weeks and markets are now counting down to a Oct. Weary Evergrande bondholders still haven't received almost $150 million worth of coupon payments that had been due on Monday, although there was little surprise after the firm had skipped two other payments in recent weeks.Įvergrande didn't reply to a Reuters request for comment. HONG KONG, Oct 12 (Reuters) - Debt-saddled Chinese property firms took heavy fire in bond markets on Tuesday, after the poster child of the sector's woes, Evergrande Group (3333.HK), missed its third round of bond payments in as many weeks and others warned of defaults.Ī wave of developers face payment deadlines before the end of the year and with Evergrande's fate looking increasingly bleak, fears are mounting of a wider crisis. Some property shares gain on hopes of policy support.Property firms top losers in Shanghai exchange traded bonds.Evergrande could be formally declared in default Oct.