Chinese developer’s dollar bonds slump amid repayment fears

The dollar bonds of Chinese developer Sinic have come under intense selling pressure this week, following a plunge in the firm’s shares and a credit rating downgrade on concerns over its finances. Sinic’s $246 million bond due Oct 18 was trading at around 25 cents to 28 cents on the dollar Tuesday morning, according to credit traders. The note finished last week around 90 cents, according to data compiled by Bloomberg. The firm’s two dollar notes maturing next year were indicated to have fallen to below 25 cents, the data shows, from around 75 cents. S&P Global Ratings lowered Sinic to CCC+ from B on Tuesday and put it on watch for further downgrade, citing “substantial risk.” Sinic halted trading after an 87% slump in its shares on Monday afternoon.