China Junk Dollar Bonds Hit Five-Month Low as Worries Spread

(Bloomberg) — Chinese high-yield dollar bonds are trading at their lowest level of the year as liquidity worries about property enterprises dash optimism about rising new-home sales.

Wednesday’s declines for junk notes grew to at least 2 cents in the afternoon, according to a credit trader. Bonds issued by Hopson Development Holdings Ltd. and a unit of Seazen Holdings Co. fell as much as 6 cents, according to data compiled by Bloomberg. Average prices dropped for a seventh straight session Tuesday, a Bloomberg index of the market put them below 70 cents on the dollar for the first time since December.