Kaisa’s Debt Swap Looms; Ashmore Buys Bonds: Evergrande Update

Kaisa Group Holdings Ltd.'s City Plaza development under construction in Shanghai.Photographer: Qilai Shen/Bloomberg
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The newfound stability in Chinese dollar bonds will be tested this week as Kaisa Group announces whether creditors agreed to swap $400 million of dollar notes in a move designed to avert default. Investors holding more than half of those notes are not willing to support the deal, local media outlet Jiemian reported.

London-listed asset manager Ashmore Group bought almost $100 million of bonds issued by China Evergrande Group or its subsidiaries, bringing its holdings of the debt to more than $500 million at the end of September as other investors were heading for the exit. Evergrande closed 0.4% higher after plunging 8.8% on Monday.