Chinese developers seek onshore bonds

Author: Ashley Lee | Published: 14 Aug 2015

Chinese real-estate developers have been among the most prominent Asian issuers in the US dollar bond market. But yuan depreciation and market conditions have lured them onshore.

Until recently, the country’s real-estate developers preferred to look offshore, given its lower cost of funding and onshore regulatory restrictions. Kaisa’s January default also raised questions about the sector’s recovery prospects.

These issuers are now looking to onshore bonds, which are seeing more demand and less stringent terms. Most Chinese developers also need yuan-denominated funding; the recent yuan-to-dollar depreciation makes dollar issuances more expensive.

"The market is still digesting the information,...