In Depth: How Evergrande Created China s Most Valuable Automaker Without Selling a Single Car caixinglobal.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from caixinglobal.com Daily Mail and Mail on Sunday newspapers.
By Reuters Staff
(Corrects grammar in paragraph 1.)
SHANGHAI, Feb 9 (Reuters) - China’s casino-like convertible bond market is feeling the pressure of regulatory scrutiny and tighter domestic cash conditions, causing bond prices to fall sharply.
Declines in the prices of these bonds, which are hybrid securities with features of both bonds and stocks, have taken the CSI convertible bond index to seven-month lows this week and down nearly 7% in just about two weeks.
Many of the convertible bonds are trading below their 100 yuan ($15.51) par value, reflecting both the drop in the underlying prices of the companies’ stocks as well as worries about default and demand for the bonds.