By Andrew Galbraith

SHANGHAI, (Reuters) – Offshore bondholders of China Evergrande Group, a beleaguered developer, were waiting for information on the more than $148million in looming coupon payments. The company had missed two deadlines on coupon payments last month.

It is unlikely that the company will pay the semi-annual payment on April 2022, 2023 or April 2024 notes due October 11. This is because it prioritises creditors onshore and does not speak on dollar debt obligations.

This has made offshore investors nervous about their ability to lose large sums at the expiration of the grace periods. The developer is responsible for more than $300 Billion in debts.

Evergrande’s woes have broken waves in global markets. Already, the company has missed out on payments for dollar bonds worth $131million, due September 23rd and 29, respectively.

Advisors to Offshore Bondholders indicated Friday that they would like more information and transparency from the cash strapped property developer.

Advisors stated that offshore bondholders also want more details about Evergrande’s plans to sell some businesses, and the use of the proceeds.

Evergrande’s shares have been stopped as has its Evergrande Property Services Group. This is in anticipation of major deals. The company’s electric-vehicle unit suffered large losses as well as gains Monday. It fell as high as 4.65%, and rose as high as 9.28%.

Concerns about Evergrande contagion affecting China’s wider property sector led to heavy selling of high-yield Chinese debt. This was especially after Fantasia Holdings Group Co, a smaller developer missed Oct. 4 deadline for a payment of $206 million in international market debt.

Last Friday, February 9, 2019, the spread option-adjusted on the ICE (NYSE 🙂 BofA Asian dollar High Yield Corporate China Issuers Index reached 2,069 base points. It was its largest ever.

Fantasia Group China Co stated Monday that it will modify the trading method of Shanghai-traded bonds after credit downgrades by China Chengxin International Credit Rating Co. CCXI. It said its parent had created an emergency group to address liquidity problems.

After sharp falls in Fantasia Group’s bonds, the Shanghai Stock Exchange halted trading Friday. This follows a similar change last month with Evergrande’s bonds.

Kenneth Ho (NYSE:) is the head of Asia Credit Strategy for Goldman Sachs.

We believe policymakers don’t want to stimulate too much and that their long-term goal is deleveraging the property sector. It may take more time to find the perfect balance, and uncertainties will continue to pose a risk for China’s high-yield market.