Although China’s central and local governments have recently launched various incentives to revive a weakening property market, the precedent of Evergrande Group’s default is likely to be repeated.

Bloomberg reported earlier this month that Chinese luxury builder Shimao Group missed payment on a 1 billion dollar note due on July 3, its first default on a public bond. Shimao continues to face an unpaid offshore debt of about 5.5 billion dollars.

The incident made investors become more concerned following a series of defaults from big Chinese developers.

And China’s battered real estate industry is expected to face more incoming defaults.

The Financial Times citing data from consultancy firm Dealogic reported that about $13.3 billion in dollar bond payments from more than 60 property companies will come due before the end of this year.

That number is equivalent to 13% of the real estate sector’s over $100 billion in outstanding obligations to foreign bondholders.

These potential defaults in the second half of this year are highlighting the gloomy outlook of China’s property market.

It also heightens worries among the bondholders with exposure to Chinese developers, which have once been the main issuers in Asia’s high-yield bond market.

In the case of Shimao, its defaulted bonds traded at just 12 cents on a $10 face value earlier in July. It indicates that the property sector is facing huge financial distress.

China’s developers exposed its weaknesses after the government launched a sweeping crackdown on leverage built up in the sector. China Evergrande Group, Sunac and others have defaulted on a number of bonds.

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