Source: Bloomberg
Author: Trista xinyi Luo
China's garbage -level US dollar bond market trend will lower for the eighth consecutive day, the longest decline since August 2023. Earlier weak house sales data highlighted the decline in the property market.
According to the data compiled by Bloomberg, Vanke expired 3.975%of US dollar bonds in 2027 to pay 3.5 cents per US dollar on Wednesday to 44 cents, setting the lowest level since May.China Jinmao fell about 2 cents in 2029, and some bonds of Longhu Group were similar.
According to a Bloomberg index, the average price of China ’s high -yield US dollar bonds fell to 85.6 cents in 7 days as of Tuesday, which is also the lowest level in four months.
As Chinese real estate companies are facing the pressure of continuous decline in real estate sales, investors are nervous and uneasy.The new turmoil led to the interruption of the market rebound earlier this year. At that time, as the government supported the scarred real estate industry, China's high -yield US dollar bonds rose to the highest level in three years.
"We are still cautious about Chinese real estate companies, because uncertainty still exists, and we have not seen market stability," said Andy Suen, co -supervised by Berry's investment in Asia's fixed income.
Although the Chinese government strives to support the market, the decline in the property market has deepened in August.Developers such as Country Garden and Vanke have shrunk and have also caused confidence.
"In the context of selling in the first half of the year, it is still weak in profit margins, the leverage is weakened, and the liquidity is limited," said Leonard Law, which is limited, and limited liquidity.
"People realize that a series of policies and measures to promote the rise in April and May are not as effective as expected," LAW said."Coupled with weak macro data, the emotions of high -yield bonds against China's high -yield bonds are turned into risk aversion."
