Chinese Property Bonds Hammered by Weak September Sales and a Surprise Default – The Wall Street Journal

Shrinking apartment sales and an unexpected default have stoked fresh investor concerns about China’s property developers, causing a steep selloff in U.S. dollar bonds from many of the sector’s debt-laden companies.

On Wednesday, traders said dozens of dollar bonds sold by Chinese real-estate companies tumbled in price, pushing yields on those bonds higher. The selldown extended sharp declines logged the previous day, reflecting increasing investor pessimism after luxury developer Fantasia Holdings Group Co. failed to repay $206 million in dollar bonds that matured on Monday.