China’s Bond Markets Slump Again as New Evergrande Deadline Passes

SHANGHAI/LONDON—Chinese property firms’ bonds were hit with another wrecking ball on Monday as Evergrande looked set to miss its third round of bond payments in as many weeks and rivals Modern Land and Sinic became the latest scrambling to delay deadlines. High-yield Chinese bond markets were being routed once again as fears about fast-spreading contagion in the $5 trillion sector, which drives a sizable chunk of the Chinese economy, continued to savage sentiment. Weary investors had been holding out little hope that Evergrande would suddenly stump up Monday’s near $150 million of coupon payments, but the fact bondholders said they hadn’t received anything this time either just bolstered expectations for a full-scale default. Once China’s largest developer, the firm has more than $300 billion in liabilities that are now at risk. Other signs of stress included smaller developer Modern Land asking investors to push back by three months a $250 …

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