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Fitch Ratings has downgraded China Aoyuan Group Ltd (奧園集團) to “restricted default” from “C,” citing the developer’s announcement earlier this week that it would not make payments on a set of dollar bonds. The ratings firm said that any failure by Aoyuan to honor bond principal payment is consistent with its definition of the latest labeling, as the borrower “has experienced an uncured payment default on a material financial obligation.” An Aoyuan dollar bond originally due on Thursday, one of the four the developer said it would skip paying, was indicated 3.6 cents lower on the US dollar at 13.9 cents yesterday, ....
HONG KONG: Stocks and bonds of Chinese property developers stretched their gains into Thursday on hopes a slew of recent government measures would help ease a funding squeeze in the embattled sector, even as another developer warned of default. ....