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China Developers Account for About Half of World’s Troubled Debt

China Developers Account for About Half of World’s Troubled Debt

In a world where central bank stimulus has wiped out most of the distress from global bond markets, the troubles of China’s property companies are standing out.

Of the $139 billion of U.S. dollar-denominated bonds trading at distressed prices, 46% were issued by companies in China’s real estate sector, according to data compiled by Bloomberg on Oct. 12, which captured bonds trading at yield premiums of at least 10 percentage points above their benchmark rates.

China Developers Account for About Half of World’s Troubled Debt

Junk-rated dollar bonds from Chinese issuers have reached yields not seen in about a decade following months of weakness on concerns about rising debt-repayment pressure for developers and the sector’s increasing number of defaults. 

The strains have been fueled by the troubles of industry giant China Evergrande Group, which missed bond interest payment deadlines starting last month. That was followed with a surprise default by Fantasia Holdings Group Co. and a warning from Sinic Holdings Group Co. that its default was imminent.

China Developers Account for About Half of World’s Troubled Debt

The stress has hit scores of issuers tied to the Chinese property market, leaving a $64 billion pile of troubled debt that dwarfs other sectors.

The following is a list of Chinese property borrowers whose bonds trade with yield spreads of at least 10 percentage points. For a worksheet that includes all such dollar bonds globally, click here.
 

IssuerTickerUSD Stressed Debt
China Evergrande GroupEVERRE     $14,001,397,000
Kaisa Group Holdings Ltd.KAISAG        9,674,475,000
Sunac China Holdings Ltd.SUNAC        6,612,000,000
Scenery Journey Ltd.TIANHL        5,235,000,000
Yuzhou Group Holdings Co.YUZHOU        4,554,000,000
Greenland Global Investment Ltd.GRNLGR        3,570,000,000
Easy Tactic Ltd.GZRFPR        2,925,000,000
Fantasia Holdings Group Co.FTHDGR        2,184,100,000
CFLD Cayman Investment Ltd.CHFOTN        2,130,000,000
Central China Real Estate Ltd.CENCHI        1,997,300,000
Ronshine China Holdings Ltd.RONXIN        1,603,000,000
China Aoyuan Group Ltd.CAPG        1,535,000,000
Wanda Properties Overseas Ltd.DALWAN           950,000,000
Caiyun International Investment Ltd.YUNMET           800,000,000
Redsun Properties Group Ltd.REDSUN           705,000,000
China South City Holdings Ltd.CSCHCN           694,000,000
Logan Group Co.LOGPH           650,000,000
KWG Group Holdings Ltd.KWGPRO           625,000,000
E-House China Enterprise Holdings Ltd.EHOUSE           600,000,000
Jiayuan International Group Ltd.JIAYUA           530,000,000
Agile Group Holdings Ltd.AGILE           500,000,000
China SCE Group Holdings Ltd.CHINSC           500,000,000
Gemstones International Ltd.LVGEM           470,000,000
Zhongliang Holdings Group Co.ZHLGHD           450,000,000
Modern Land China Co.MOLAND           300,000,000
Sinic Holdings Group Co.SINHLD           244,000,000
Xinyuan Real Estate Co.XIN           229,000,000

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©2021 Bloomberg L.P.