Aoyuan Bond Drop Pulls Down China Junk Notes: Evergrande Update
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China Aoyuan Group’s dollar bonds declined, dragging Chinese junk notes down with them, as a report saying the company failed to pay a trust loan in full revived concerns about stress among the country’s developers.
China high-yield dollar notes dropped 1 to 2 cents, credit traders said, and Aoyuan’s 2022 and 2023 bonds both slumped, Bloomberg-compiled prices show. The property company missed payment on 66 million yuan ($10.3 million) of a 78 million yuan trust loan on Nov. 12, REDD reported, citing a source familiar with the matter and a notice seen by the research firm.