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China debt crunch

BlackRock, UBS and HSBC Evergrande bond holdings rise

Chairman Xu Jiayin says company will 'walk out of its darkest moment'

Security personnel seal off Evergrande's offices in Shenzhen. Chinese authorities are keen to prevent the group's troubles from causing wider economic ripples.   © Reuters

HONG KONG -- Even as China Evergrande Group's bonds have fallen toward 25 cents on the dollar amid worries the developer will default, fund managers including BlackRock, UBS and HSBC Holdings have been increasing their holdings of the debt.

Some funds have added Evergrande bonds "given widening spreads and attractive valuations," said Patrick Ge, a research analyst at Morningstar. "This is in line with what we have heard from some managers where they said that at its current levels, they believe Evergrande is a buy."

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