Caixin
Oct 18, 2022 04:14 PM
FINANCE

Chinese Junk Bonds Set Record Low as Property Crisis Spreads

Buildings in Chongqing on Aug. 17. Photo: Bloomberg
Buildings in Chongqing on Aug. 17. Photo: Bloomberg

(Bloomberg) — Chinese junk dollar bonds have dropped to a record low, as a property crisis sparked by a crackdown on excessive borrowing and a slide in home sales shows few signs of turning around without more policy steps.

The notes, dominated by real estate firms, fell 0.3 cent on the dollar to 55.7 cents Monday, according to a Bloomberg index. Prices reached 56 cents in August before some government support fueled the biggest monthly gain in a decade. But that rally faded like others this year. The market slid for a fourth-straight week through Friday in the longest streak since July.

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