Chinese developers to flock to bond markets as current debts mature

Hong Kong

ALMOST US$6 billion in dollar bonds issued by Chinese developers are due to mature over the rest of 2017 and in the first quarter of next year, ensuring a steady supply of fresh debt as these companies refinance.

There is also more than US$5 billion in bonds that can be redeemed before the end of the year because they have early redemption clauses. With interest rates creeping up from historically low levels, companies will be tempted to "call" the bonds now to avoid a more costly refinancing later, debt traders said.