Building default fears pummel Chinese property firms

LONDON : Chinese property firms watched their bonds take another beating on Friday as the prospect of a wave of defaults in the sector in the wake of China Evergrande's troubles continued to scare off investors.

Smaller rival Fantasia appointed advisors after it shocked markets by also missing a payment this week, while both R&F Properties and Xinyuan suffered credit rating downgrades, the latter after it had asked to push back one of its own payments. Kaisa Group, which was the first Chinese property developer to default back in 2015, saw one of its bonds suffer a 9 cent slump , while R&F and Central China Real Estate bonds were also widely sold.

The bond that Fantasia failed to repay this week had previously been changing hands close to par as the firm had said only two weeks earlier that its cashflow was fine.Fitch was the latest credit rating agency to downgrade debt-saddled Xinyuan Real Estate, after it announced a plan to swap and extend a bond payment deadline due next week.

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