BlackRock, UBS Among Funds Cutting China Property Exposure

(Bloomberg) — Asia’s largest high-yield bond funds are steering clear of China’s real estate sector as a worsening liquidity crisis weighs on the debt, according to research firm Morningstar Inc.

The average weighting of China property bonds in Asian junk funds dropped to 16% in June from almost 28% at the end of last year as a crackdown on borrowing and a plunge in housing sales continue to batter the industry.