Caixin
Jul 18, 2023 05:16 PM
FINANCE

China Developer Bonds on Cusp of Distress After Wanda Surprise

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Wanda’s name towers over the Qingpu shopping mall in Shanghai on May 25, 2023. Photo: Bloomberg
Wanda’s name towers over the Qingpu shopping mall in Shanghai on May 25, 2023. Photo: Bloomberg

(Bloomberg) — A gauge of Chinese high-yield dollar debt fell to the cusp of distress after one of the most closely watched property firms warned it was short of funds to repay a bond due in days, renewing concerns about the health of developers struggling with weak sales and limited refinancing access.

A key unit of Dalian Wanda Group Co. Ltd. — among the few Chinese real estate conglomerates to stay afloat even as peers succumbed to an industrywide debt crisis in recent years — told some creditors Monday it faces a funding gap of at least $200 million for repayment of a $400 million note that matures July 23. There’s no grace period for the unit, Dalian Wanda Commercial Management Group Co. Ltd., to pay the principal.

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