Evergrande contagion sweeps Chinese developers

It’s on like Donkey Kong for Chinese developers. Evergrande is going out of business and other weak players are being sucked in:

A worsening selloff in China Evergrande Group’s dollar bonds is once again spreading to other developers, raising the stakes for Chinese authorities as they mull whether to support billionaire Hui Ka Yan’s embattled property empire.

One of the company’s most widely held bonds is indicated at 28.2 cents on the dollar Thursday, set for a record low, after plunging nearly 6 cents the previous day. The rout — triggered by Evergrande’s warning of a potential default if its asset-sale plans fail to materialize — is prompting a selloff in the bonds of other weaker-rated property firms.

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