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Funds exposed to China Evergrande stocks and bonds By Reuters


© Reuters. FILE PHOTO – Chinese flags can be seen at the Evergrande Center, Shanghai, China on September 24, 2021. REUTERS/Aly Song/File Photo

(Reuters) – Sharp (OTC:) falls in the stocks and bonds of China Evergrande Group have raised the spectre of losses for global asset managers with exposure to the embattled property developer.

These graphs show asset managers’ exposure to Chinese stocks and bonds, and their performance.

Refinitiv Eikon data shows that Vanguard funds owned a collective $40 million in shares. BlackRock, however, held at most $13 million through its iShare MSCI emergen market ETFs.

Graphic: Funds with biggest shareholding in China Evergrande Group:

Evergrande bondholders also include some of the world’s biggest asset managers, according to the latest data published by Morningstar Direct on holdings of U.S. and cross border funds, as well as Asian bond funds.

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Data showed that the debt was held by UBS, Fidelity and PIMCO funds, along with emerging markets-focused asset manager Ashmore Group.

Graphic: Asian debt funds’ holdings in China Evergrande bonds:’s%20bonds.jpg

Graphic: EM debt funds’ holdings of Evergrande bonds:’%20holdings%20of%20Evergrande%20bonds.jpg

Some of the funds had raised Evergrande exposure in July and August even as unease grew over its financial situation, Morningstar found.

After the announcement on Wednesday that it has reached a settlement for interest payments on a domestic bond, Evergrande shares have recovered some of its recent losses. Retail investors were assured that their top priority was being met by the firm on Thursday.

Stocks closed Monday’s day 8% higher than they were on Monday. According to Refinitiv data, this stock plunged 83% in the past year. This is the fourth largest decline of Asia’s mid- and large-cap firms.

Graphic: Performance of China Evergrande Group’s shares this year:’s%20shares%20this%20year.jpg

Evergrande missed a $83.5 million coupon payment deadline on a dollar bond last week and its silence on the matter has left global investors wondering if they will have to swallow large losses when a 30-day grace period ends.

On Wednesday, the record yield of that bond matured in March 2022 reached 636%, an increase of 13.7% from the beginning of the year. The bond traded at 570% Monday.

Graphic: Change in China Evergrande Group’s bond yields this year:’s%20bond%20yields%20this%20year.jpg

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