A sell-off in bonds issued by Brilliance Auto Group Holdings has revealed investor concern over the state-owned carmaker's growing financial strain, after it agreed to sell down its stake in a lucrative joint venture to its partner BMW.
Several of Brilliance's bonds slumped on Aug. 12 after some bondholders sold off the debt. Prices of two bonds traded on the Shanghai Stock Exchange plummeted more than 20% during the day, which led to trading halts.
