LONDON : International investors that have been piling into China in recent years are now bracing for one of its great falls as the troubles of over-indebted property giant China Evergrande come to a head.
"We will have to see what happens," said Sid Dahiya, head of EM corporate bonds at abrdn, formerly Aberdeen Standard, in London, which holds a small sliver of the bonds. Analysts say the bigger picture is that if Evergrande - which has more than 1,300 real estate projects in over 280 cities - does topple, it will firmly dispel the idea that some Chinese firms are too big fail.
There are big name global funds involved too. EMAXX data shows that Amundi, Europe's largest asset manager, was the largest overall holder of Evergrande's international bonds although it is likely to have sold at least some before things turned really ugly. He added it been a text book example where investors had been lured in by the 10per cent plus interest rate the bonds had provided.https://fingfx.thomsonreuters.com/gfx/mkt/gdpzyqwxwvw/Pastedper cent20imageper cent201631786557862.png
Other funds also exposed to the bonds include the world's biggest asset manager BlackRock, as well dozens more such as Fidelity, Goldman Sachs asset management and PIMCO.
The signs are there....
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