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Property Developers’ Dollar Bonds: Dancing in a Minefield

China’s property market is suffering nationwide, but sales and construction activity vary widely by region in the recovery from the Covid-19 outbreak. In this note, we evaluate which major developers issuing offshore dollar-denominated bonds are most exposed to the current slowdown based on their financial conditions and regional investment patterns. Sales have dropped more dramatically in central and western China, while northern and eastern provinces have reported smaller declines. Developers exposed to Hubei and Chongqing seem particularly risky at present, as well as smaller firms concentrated in one or two regions.

Posted May 4, 2020
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