Many of Shimao Group’s bonds are held by investors who have much lower tolerance for defaults than those who dabble in names like Evergrande. “Should this weak sentiment cross over to IG-rated private developers, sector sales could collapse, triggering more defaults,” the analysts wrote. Shimao Group’s mainland unit said late Tuesday that its business activities are normal and nothing has happened that would affect its ability to repay yuan bonds. Shimao Group has blamed the selloff in its bonds and shares this week on unspecified “rumours”. Shimao Group has about US$10.1 billion in outstanding local and offshore bonds.

Source: The Edge Markets December 15, 2021 14:09 UTC