This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Chinese property developers Longfor and Vanke saw their dollar bonds drop across the curve. Longfor’s bonds fell as much as 3.9 points and Vanke’s bonds were down ~1.6 points. Both Longfor and Vanke are IG-rated developers and the drop in their bonds come at a time when Country Garden approaches a possible default on its dollar bonds. Also, Vanke was downgraded yesterday by Fitch to BBB from BBB+ on the expectation that its leverage (measured by net debt-to-net property assets) will stay above 35%. Besides, the sector has seen a continued drop in property sales. Data yesterday showed that property sales by floor area fell 19.8% YoY in September and YTD sales fell 7.5% YoY.
Separately, an ad hoc group of Kaisa’s creditors have rejected a proposal to restructure its offshore debt. The group, collectively holding over a third of the offshore debt did not back a preliminary proposal by the company. Kaisa said that it was still in negotiations with the creditor group to look at possible ways to meet at an agreement.