China Developers Suffer Broad Bond Selloff Amid Lockdown Fears

High-yield notes from China’s property sector fell as much as 2 cents on the dollar Tuesday, credit traders said, led by Country Garden, the country’s top builder by contracted sales. Photo: VCG

(Bloomberg) — Dollar bonds of Chinese developers fell across the board Tuesday, with stress spreading from junk-rated names to investment-grade peers amid renewed concerns about more Covid lockdowns in the country.

High-yield notes from the sector dropped as much as 2 cents on the dollar, according to credit traders, led by Country Garden Holdings Co. Ltd., China’s top builder by contracted sales. Investment-grade dollar bonds from peers Longfor Group Holdings Ltd. and China Vanke Co. Ltd. were poised to set record lows.