China Evergrande’s dollar bonds plunged on Thursday due to a growth of concerns over the company's financial position. Bondholders are continuing to exit frightened by missed payments at the developer’s branches and a report that regulators are investigating company’s ties to an obscure bank in northern China.
Previously, we reported that bonds of China Evergrande plunged as the China Banking and Insurance Regulatory Commission was examining over CNY 100 billion of transactions between the company and Shengjing Bank Co (owner of the huge amount of the company's bonds).
In 2019, Evergrande increased its stake in Shengjing Bank by using proceeds from its bonds. At that time, Chinese law required investors to use only own funds to invest in banks, not borrowed.
10% 11apr2023, USD bond fell from 84.341% (June 9) to 79.471% (May 28).
9.5% 11apr2022, USD note slid from 92.01% (June 9) to 86% (June 10).
The price figures correspond to the latest data of the Frankfurt Stock Exchange.
