China Junk Bonds Suffer Worst Slide of 2023

The transcript discusses recent trends in the bond market, highlighting a three-day decline and the volatility experienced over the past two years. It focuses on the financial struggles of Wanda, a major player in commercial real estate, and its inability to raise sufficient funds to meet bond payments. The discussion also touches on other real estate companies like Greenland and Sino Ocean, which are facing similar financial challenges. The market's reaction to these developments is characterized by significant volatility, influenced by concerns over defaults and potential policy changes from Beijing.

What is the significance of the 70-cent threshold in the bond market?

• It indicates a bond is performing well.

• It marks the boundary between distressed and non-distressed bonds.

• It is the average price of bonds in the market.

• It is the highest price a bond can reach.

What was the market's reaction to Wanda's financial situation?

• The bond value increased by 42%.

• Investors showed confidence in timely payment.

• The bond value dropped significantly, indicating doubts about repayment.

• Wanda announced a successful fundraising.

What was the reported shortfall for Wanda's bond maturing on July 23rd?

• $100 million

• $200 million

• $300 million

• $400 million

Which company is mentioned as having a bond maturing on August 2nd?

• Greenland

• Wanda

• Sino Ocean

• Central China Real Estate

Which company was mentioned as a state-backed defaulter last month?

• Wanda

• Greenland

• Sino Ocean

• Central China Real Estate