China property firms are set for the worst week in months. That's because we’re seeing spillover from the credit crunch hitting more and BIGGER developers

Contagion risks are hitting largest builders (Country Garden/Sunac), as others scramble to delay payments (Shimao/Yuzhou)👇

China’s largest developer, Country Garden faces dwindling confidence as it fails to win sufficient demand for a convertible bond deal.

Signs that stronger, investment grade firms are struggling to raise debt should prompt serious contagion concerns

bloomberg.com/news/articles/2022-01-13/country-garden-selloff-shows-chinese-developer-worries-spreadi...

China's third-largest developer, Sunac faces court-ordered asset freeze. It says dispute is resolved, orders will be withdrawn. It even raised $580m partly to repay loans

But investors aren’t convinced -- significant risk of default is being priced in: usd bonds trading ~47c

Shimao – long-considered a ‘safer’ developer and rated investment grade (!) in Nov – wants to delay paying $183m of securities. That’s stoking fears it could start delaying bond payments too. It's got $1b usd note due July
bloomberg.com/news/articles/2022-01-13/shimao-looks-to-push-out-payments-on-183-million-of-securities... SCOOP by @dongtongjian

Yuzhou and Guangzhou R&F tried to avert default by offering extensions on dollar bonds. Trouble is not all investors are happy about these deals...

Weak deals for creditors bode badly for the slew of extensions that are bound to follow this year

bloomberg.com/news/articles/2022-01-11/china-builder-guangzhou-r-f-set-to-avoid-default-on-dollar-bon...