Zhuhai Huafa Group Co., a major Chinese local government-owned conglomerate, is facing a record selloff in its offshore bonds as the country's property crisis raises credit risks. The company's 4.5% 1.4 billion yuan bond due in December indicated about 7.5% lower, trading at roughly 91% of face value, marking the biggest daily drop since 2024 pricing. A 500 million yuan 2029 bond plunged 12% to trade at about 86% of face value.
The State-Owned Assets Supervision and Administration Commission of Zhuhai controls about 93.5% of Huafa. With 765 billion yuan in total assets and 413 billion yuan in liabilities as of March, the conglomerate saw property development and urban operations account for half its revenue. Last year, it reported a total loss of 16.9 billion yuan, weighed down by China's property downturn.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing