Mid-Year Review on Chinese Property Developers: A Tale of Two Cities

Overview of Chinese Property Developers Offshore USD Bond Issuance

Total offshore USD bonds issuance amount by Chinese property developers recorded a year-on-year decrease of c. 8.2% to USD25,791 million in 1Q 2020, and continuously dropped to USD5,513 million in 2Q 2020, representing another year-on-year decrease of c. 74.8%. The number of issuances also fell by c. 60.7% year-on-year in 2Q 2020. In 1H 2020, Chinese property developers tended to issue offshore bonds with shorter tenors. Bonds with maturity of below three years accounted for c. 55.5% of the total issuance amount in 2Q 2020, representing a 24.4 percentage points increase vis-à-vis 1Q 2020 for the same tenor category.