Zhenro’s debt worries also weighed on developer Ronshine China with some of its dollar bonds like its 8.95% 2023s at record lows while its shares fell 7.3%. Bloomberg notes that Ronshine Chairman Ou Zonghong is a brother of Ou Zongrong, who is Zhenro’s controlling shareholder, according to Hong Kong stock exchange filings and Bloomberg-compiled data. Adding to the negative news, Bloomberg reported that credit traders cited an anonymous social media post that said that Ronshine plans to extend the March 1 maturity on its $456.49mn 10.5% dollar bond, which could also be the reason for the sell-off. The bonds fell 13.6 points to currently trade at 58.54.
Ronshine’s 10.5% 2022s are among the top losers today, dropping 19% to 58.5 cents on the dollar.
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