Still no joy for the beleaguered Chinese property market as the crisis rolls on. Developer spreads remain paralysing:
Barclays captures the mood:
Zhenro Properties stole the show this week as its 10.25% perpetuals fell 70pts, to 23, on concerns that the company may not redeem the bonds in March as previously planned. This follows the recent weakness and concerns about Logan Group2 and Shimao Group Holdings3 since the Lunar New Year holidays. Any optimism from early last week driven by reports that China would announce “nationwide regulations to standardise use of pre-sale funds ,” and that asset management firms may be directed to help to restructure ailing property developers5 faded quickly, as Zhenro’s repayment risks spilled over to the rest of the sector.
