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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA
- Last year, Beijing’s strict deleveraging targeting the housing development sectors combined with narrowing options for raising funds (due to the sharp contraction in liquidity) generated a sharp selloff in property developers (both equity and bond prices).
- It first started with Evergrande, one of the most indebted property developers in the world, then gradually spreading to other major China developers.
- With China home prices falling for 10 consecutive months, pressure on the developers’ market has remained intense.
- In addition, the uncertainty over the economic outlook due to the strict zero-Covid policy has been weighing on growth expectations and domestic asset prices.
- The chart below shows the bond prices for China major property developers maturing in 2024.
- Interestingly, to the exception of Vanke 5.35% and Poly Real state 3.875%, which are currently trading slightly below par, all the rest of the property developers’ bonds have experienced significant selling pressure in the past year.
- Fantasia, Shimao and Evergrande are all trading below 10, with Sunac 5.95% currently trading at around 11.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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