AFTER Kaisa Group Holdings Ltd defaulted on its dollar bonds earlier this week, the market got to wondering, who could be next? They didn't have to look very far.
Attention has rapidly shifted to Glorious Property Holdings Ltd, whose controlling shareholder is billionaire Zhang Zhirong. It must repay US$19.5 million of interest on Monday on its US$300 million of 13 per cent notes due 2015. Moody's Investors Service cut its senior unsecured rating to Ca, just one step from the lowest grade typically signalling default, on April 20, citing sliding sales.
Investors got a reminder of the risks of investing in Chinese companies' some US$275 billion of dollar bonds outstanding when Kaisa missed a grace...
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