2023-09-14 13:22:50
Source of crises: China’s real estate companies are shaky. Image: AFP
In China, tolerance towards bond issuers is being tested. The real estate sector is wobbling. Anyone who wants to rely on safer coupons will find what they are looking for in the United States. And a candy manufacturer also collects money.
Investors in China are particularly aware that bond investments are also associated with risk. The real estate group Country Garden was unable to service the coupon payment on a corporate bond. Negotiations with creditors followed. Now the ailing company has managed to convince them to defer payment. At the same time, the real estate company Evergrande filed for bankruptcy in the United States. The real estate crisis in China, which has been latent for a long time, is now manifest and is also noticeable for investors.
Philip Krohn
Editor in business, responsible for “People and Business”.
The Chinese prosperity model is currently being tested, wrote James Donald, head of emerging markets platform at Lazard Asset Management. Companies would be disrupted in their development. “Investing in China can still make sense. However, the outflow of capital and the deteriorating economic situation are a matter of concern,” he wrote. At the same time, however, the economy with its 1.4 billion inhabitants is too large to be ignored in portfolios.
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