China Huarong’s perp and longer-maturity bonds dropped after its peer China Great Wall Asset Management Co. missed its deadline to report its 2021 annual report in June. “We are starting to see a contagion effect from Great Wall to the whole AMC space… it is not surprising that Huarong’s subordinated perpetual bonds have seen the biggest dip given their weaker bond structure”, said Nicholas Yap, head of Asia credit desk analysts at Nomura. Huarong is not new to earnings delays, having missed their deadline in early-2021 causing its bonds to fall, ultimately culminating with a massive loss and a bailout by Citic Group.

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