Mainland Chinese property stocks fell sharply on Monday after a last-ditch bond repayment by conglomerate Dalian Wanda failed to allay investor concerns about the sector.
The group raised $320mn through the partial sale of a subsidiary over the weekend and repaid a $400mn bond that had been due on Sunday, according to two direct investors, who asked to remain anonymous.
However, shares fell in other prominent property businesses, including China’s largest homebuilder Country Garden, in a sign of the continuing pessimism over a sector that has weighed on the Chinese economy after a wave of earlier defaults. The Hang Seng Mainland Properties index closed down 6.4 per cent on Monday in Hong Kong, far outstripping a fall of around 2 per cent by the city’s benchmark Hang Seng stock index.