The repeated shocks have only worsened investor sentiment. An index tracking developer shares slumped as much as 3.3 per cent on Friday to its lowest level since March 2017. China Aoyuan tumbled over 15 per cent. Shimao Group dollar bond due 2026 sank about 10 cents to 71 cents on the dollar.
The rout has sent junk dollar bond yields toward 22 per cent. That makes it prohibitively expensive for firms to tap the offshore market to repay debt as they did in the past. Other avenues for cash-raising are narrowing rapidly.
Plunging home sales have curbed revenue, while finding buyers for asset disposals is proving challenging. Evergrande last month ended discussions to sell a controlling stake in its property-management business that would have raised about $2.6 billion.
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
-
Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
-
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in