WeChat bargain hunters seek profits in China property bond rout
Information about WeChat bargain hunters seek profits in China property bond rout
By Andrew Galbraith
SHANGHAI (Reuters) – In late October, as a growing liquidity crisis across China’s property sector walloped developers’ bonds, a group of Chinese finance professionals got together on the messaging app WeChat to pool their funds and buy the unloved debt.
The first target was a 5.3% January 2022 bond issued by a unit of Yango Group, trading at around half its face value and yielding in excess of 400%.
Punters were invited, via WeChat, to pool a minimum of $50,000 each for a chance to double their money, with a downside likely limited at 50%, according to a source who was invited to participate.
Yango, whose Chinese name means Sunshine City, had been hit by a series of credit rating downgrades over its weakened access to …