Chinese Developer Bond Rout Deepens on Hidden Debt Concerns

(Bloomberg) — Fresh turmoil rocked Chinese property bonds on Monday as investors fretted over the true scale of the industry’s hidden debts. 

A Logan Group Co. Ltd. note due 2023 sank 11.5 cents to 65.5 cents on the dollar after Debtwire reported the developer could be on the hook for $812 million of guarantees on outstanding obligations due through 2023. The firm, which has the equivalent of a BB rating at all three major credit risk assessors, denied both the report and market speculation the company has privately sold debt.