China’s property downturn and recent slew of defaults are unlikely to rattle overseas creditors or deter domestic banks from channelling resources towards cash-strapped developers, according to the American investment bank.
Dual-listed Chinese companies traditionally command higher valuations for their shares on domestic exchanges than their own shares listed in Hong Kong. That premium, currently close to the highest in 13 months, is expected to widen next year on policy tailwinds, analysts said.
China’s dollar-denominated corporate high-yield bonds have lost 22 per cent this year, after a 33 per cent slump in each of the past two years. Defaults by developers, once the pillar of the Asian market, are likely to persist.