Sunac shares plunge as contagion from Wanda scrutiny spreads

Shanghai

SUNAC China Holdings Ltd shares and bonds plunged after a local media report that domestic banks are reviewing its credit risk following a deal to buy assets from Dalian Wanda Group Co, a firm that has attracted scrutiny from China's leaders for its prolific deal binge.

The shares fell as much as 13 per cent, the biggest intraday decline since July 2015. The developer's 2019 US dollar bonds were set for the largest decline on record, falling 4.9 US cents to 98.5 US cents on the US dollar as at 12.35pm Hong Kong time, according to Bloomberg-compiled prices.