Chinese property developers issued non-investment-grade bonds worth a combined US$4.55 billion in the first three weeks of 2014, accounting for 11 of 12 such issues in Asia outside Japan, the Wall Street Journal reported Monday, citing data from Dealogic. The amount is not far off the record pace set in the same period last year, when Chinese companies issued US$5.87 billion in junk bonds, the report said. However, concerns about weakening economic growth and the likelihood of a high-profile loan default are putting investors off, according to the newspaper. Meanwhile, total junk bonds for Asia, excluding Japan, shrank 40 percent to US$4.77 billion. The Chinese firms sought to tap bond buyers who were looking for higher yields amid ultra-low interest rates. But unlike last year, when bond prices soared, the new debt has turned sour immediately after issuance, the report said.
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