Shimao Group Chinese Developer Bond Plunged Sharply Taking Down Others With It
Offshore bonds of Shimao Group plunged sharply to the lowest in a decade
Shimao Group Holdings Ltd’s shares and bonds slumped again sparking renewed concern over the health of China’s property sector weighing on other developers. JPMorgan Chase & Co. analysts downgraded Shimao, citing liquidity crunch.
Shimao’s shares plunged as much as 12.9% on Tuesday to the lowest in a decade after plunging 12% a day earlier, according to Bloomberg. The firm’s offshore bonds slumped again taking down other Chinese high yield notes with them.
China’s economic pace slowed down in November due to lower consumer confidence and downturn in the property sector.