Property firms turn to onshore bonds in face of foreign investor caution

Mainland property firms including Evergrande Real Estate and China Vanke have issued about RMB70 billion (US$11.27 billion) in domestic corporate bonds and medium-term notes to pay off existing debt or fund future expansion over the last eight months as offshore fundraising has slowed in reaction to defaults like that of Shenzhen-based Kaisa Group, South China Morning Post reported. But while developers are increasingly taking to raising funds by issuing bonds at home, mainland companies’ overall bond issuance has dropped by 24% year on year as a now-halted bull run prompted them to tap the stock market.