China's tightening of credit to the real estate sector and the debt crisis at China Evergrande Group have sent yields on the country's riskier notes to the highest level in a decade, making it hard for Chinese developers to borrow by selling offshore dollar bonds and threatening a wave of defaults.
This is not the first time Chinese property developers' offshore bonds faced a sell-off, but this time the headwinds are particularly strong, as investors are not only worried about losses on the bonds but also have started to question Chinese developers' overall credit.
