China Huarongâs worsening bond rout stokes market contagion
Richard Frost and Rebecca Choong Wilkins
Apr 13, 2021 â 3.59pm
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Hong Kong | Growing panic over the financial health of one of Chinaâs largest bad-debt managers spilt into the broader market, as traders circulated a
Caixin report that openly considered the worst scenario for the company.
China Huarong Asset Managementâs $US300 million 3.375 per cent bond due May 2022 tumbled 13.1¢ on the dollar to 76.1¢, while a 5 per cent bond maturing in 2025 fell 9.9¢ to 79.5¢, Bloomberg-compiled prices show.
Lai Xiaomin, former head of China Huarong Asset Management in court this year. He was sentenced to death.Â
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Alibaba raised $5 billion via a four-tranche offering late Thursday, receiving more than $38 billion in orders at the peak, according to people with knowledge of the matter. The notes, comprising 10-year, 20-year, 30-year and 40-year maturities, were priced at 30 basis points to 40 basis points tighter than initial price guidance, as measured in yields above comparable U.S. Treasuries, said the people, who aren’t authorized to speak publicly and asked not to be identified.
The new dollar debt sale is the biggest in Asia since a $6 billion issuance by rival Tencent Holdings Ltd. in May. It comes amid growing expectations that Jack Ma’s tech empire may have avoided the worst-case scenarios – which had ranged from a government-led takeover to a break-up of his companies after the billionaire entrepreneur briefly returned to public sight last month and as Ant Group Co. began its lengthy overhaul process. Washington’s decision to drop deliberations of an investment ban on the
(Bloomberg) Alibaba Group Holding Ltd. pulled off Asia’s largest dollar bond sale in eight months, with investors giving a loud vote of confidence in the e-commerce giant’s long-term prospects amid easing tensions with Chinese regulators.