Investor confidence in China Fortune Land Development Co. Ltd. is tumbling as concerns grow about its debt repayment abilities just as Beijing steps up efforts to cut risk in the real estate sector.
The mid-sized developer’s dollar bonds fell to record lows earlier Tuesday, with some rebounding but a note due 2024 still down at 49.8 cents on the dollar at 5:23 p.m. Hong Kong time, Bloomberg-compiled prices show. The bond was quoted at around 86 cents at the end of last year. The firm’s onshore bonds also slumped, with one due December 2025 down 58% at 43 yuan.
Losing 3.2% Tuesday, the developer’s shares have sunk 48% in the past 12 months, making it the worst performer on the CSI 300 Index.