China Junk Dollar Bonds Extend Record String of Quarterly Losses

(Bloomberg) — Chinese high-yield dollar bonds are capping a seventh-straight quarterly loss despite government efforts to stabilize the property sector, as fresh declines the past two weeks have re-emphasized the industry’s struggles.

The developer-dominated market for such debt has lost 9.5% since the start of July, according to a Bloomberg index, threatening to post a fifth-consecutive quarter of double-digit declines. The junk notes have dropped 8% in September and are poised to erase the largest monthly return in a decade posted in August. The bonds were slightly lower Friday morning ahead of a week-long holiday in China, according to several credit traders.