China developer's bond issue hints at broader woes

Singapore

IN days of negative rates, it's hard to get excited about anything, even high-yield bonds from China. A small dollar debenture offering by a property developer, however, has generated some heated chatter in Hong Kong and Singapore.

Zhengzhou-based Central China Real Estate Ltd told investors on Monday that it was planning to sell about US$200 million of dollar securities at an indicated 6 per cent.

Usually in Asian markets, after a deal is announced with a price level, it gets completed at the close of business in New York at the latest. Instead, portfolio managers in Asia woke on Tuesday morning to an announcement that the deal was still outstanding but was now …