SINGAPORE (Reuters) -Royal Bank of Canada’s BlueBay Asset Management has joined BlackRock in accumulating credit exposure to ailing developer China Evergrande in recent months, according to Morningstar, while HSBC and TCW funds have closed positions.

Morningstar also found that UBS, Ashmore Group, and other funds based in London, had significant Evergrande debt exposures. This analysis was published by Morningstar on September 24. Morningstar found that the research of SinoPac as well as Fidelity showed significant investments.

Evergrande has a $305 billion owing and is short on cash. Some investors fear that China’s financial system could be impacted by a collapse and this may have an impact on the rest of the world.

Evergrande did not pay the interest due to its $2 billion bond that matures in March 2019. If it is not paid within the 30-day grace period, it will default.

Morningstar reports that Evergrande positions were vacated by TCW and HSBC’s fund management division in September and august. Morningstar is a research agency. Reuters reached TCW for comment, but HSBC did not respond.

Credit Suisse (SIX:), not mentioned by Morningstar, sold down its entire exposure to Evergrande debt last year, the Financial Times reported on Friday.

Morningstar reports that UBS (a Swiss bank) has Evergrande debt exposure worth $283 Million across several portfolios. Ashmore’s total runs are $146 millions. UBS and Ashmore did not respond to requests for comment.

Morningstar previously noted BlackRock’s recent increase in exposure, but stated that BlueBay has been slowly increasing its exposure.

Although it did not provide dollar amounts for the exposures of these funds, two BlueBay funds that had exposure of approximately $8 million and an index-tracking BlackRock fund with around $1.5 million each were listed in the top exposure lists.

BlueBay and Blackrock declined to comment.

Evergrande’s dollar bond prices have fallen since May, when Evergrande was behind in its suppliers payments. Last week, a $1 billion bond with a coupon due next week traded at 27.5 cents per dollar.

Morningstar mentioned only T. Rowe Price as a fund manager. T. Rowe Price closed Evergrande’s position last year and did not respond to Reuters.

Sheldon Chan (portfolio manager for T. Rowe Price’s Asia credit bonds strategy), stated in an email that “a period of high-yield default rate may cause dollar market access to be closed for some weaker issuers.”

This could keep volatility high… and offer attractive entry points for adding exposure to this sector.