Chinese property developer Sinic Holdings has joined a growing list of defaults in China’s real estate sector after a warning last week that they may be unable to make payments on their debts, reports the Financial Times. Hong Kong-listed Sinic defaulted on $246 million of bonds that were due on Monday, adding to a $206 million default from luxury developer Fantasia Holdings this month.
Borrowing costs on Asia’s bond market for riskier corporate issuers have soared in the weeks since Evergrande, the world’s most indebted property developer, missed bond payments in late September and ignited fears globally over a slowdown in China’s real estate sector.
Official figures released on Tuesday, accompanying disappointing gross domestic product data a day earlier, showed real estate output was up 8.2% in the first nine months of this year but down 1.6% in the third quarter year-on-year, its first contraction in any quarter since the start of the Covid-19 pandemic.
