HONG KONG (Reuters) – As China Evergrande Group appears set to overlook its third spherical of bond funds in three weeks, markets are shifting their focus to different indebted property builders as a wall of debt fee obligations come due within the near-term.

A complete of $38.8 billion offshore bonds issued by 40 Chinese language builders might be maturing from Oct to finish of 2022, in keeping with brokerage CGS-CIMB, with the subsequent peak of $6.2 billion in funds arising in January.

The deadline for Evergrande’s $148 million of coupon funds is 0400 GMT Tuesday, however bondholders hadn’t acquired something by finish of Asian buying and selling on Monday. Markets count on the distressed developer is prone to miss funds once more, following two different funds it missed in September.

Excessive-yield Chinese language bond markets had been routed as soon as once more on Monday as fears about fast-spreading contagion within the $5 trillion sector, which drives a large chunk of the Chinese language economic system, continued to savage sentiment.

“We see extra defaults forward if the liquidity downside doesn’t enhance markedly,” stated CGS-CIMB in a word, including builders with weaker credit standing are very issue to get refinancing for the time being.

Small builders Trendy Land and Sinic Holdings had been the most recent scrambling to delay deadlines, after Evergrande and Fantasia missed their funds since September.

Trendy Land requested bondholders on Monday to delay a reimbursement due later this month for 3 months, whereas Sinic stated it might possible default subsequent week.

Shares of Trendy dropped over 3% on Tuesday to new low.

Evergrande’s electrical automobiles unit shares jumped over 10%, nevertheless, after it vowed to start out producing automobiles subsequent yr.