In our latest edition of China Market Insights, we dive into the recent asset sales by China developers and opine that a high recovery may drive a rally in high-yield developer bonds. On the Evergrande front, Chinese authorities are said to be considering a proposal to dismantle the company by selling the bulk of its assets, a day after it shared the aim to present a debt restructuring plan in six months. Our analysis shows China's offshore dollar-bond default rate may rise in February. We also review conditions in primary and secondary bond markets, including expected and recent performance tools.
John Lee
Regional Market Analyst
Bloomberg Intelligence