Caixin
Jun 21, 2022 12:55 PM
FINANCE

China Junk Bond Selloff Enters New Phase With Record Fosun Rout

A pedestrian walks past Fosun’s headquarters in Shanghai in December 2015. Photo: Bloomberg
A pedestrian walks past Fosun’s headquarters in Shanghai in December 2015. Photo: Bloomberg

(Bloomberg) — A record selloff in Fosun International Ltd.’s dollar bonds is a sign that financial stress among China’s property developers is starting to spread to the country’s other weaker borrowers.  

The Shanghai-based conglomerate’s dollar notes lost 21% last week, the most in a Bloomberg index of Chinese high-yield dollar bonds, after Moody’s Investors Service put the firm on review for a downgrade. Most of Fosun’s notes have continued to slump since Monday, despite an offer by the company to buy back some offshore debt. 

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