Issuance volumes of Chinese property developers fell to its lowest in 1.5 years since April 2020 where the pandemic saw markets stall. As compared to the October 2020, issuance volumes dropped 81%. Amid defaults, downgrades, tight liquidity and negative capital market sentiment, access to primary markets stifled with average yields in the sector hitting their highest level in decades at 20%. What began as a headwind on Evergrande’s crisis has quickly translated into a domino impact across the sector, depressing bond prices across its peers over the course of the last two months with further uncertainty in the space.
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