Onshore bonds: cracks appear for property groups

China's domestic bond market has provided a funding bonanza for its property companies since last summer. Will signs of investor fatigue tempt some of them offshore again?
Onshore market feeling the deluge from Chinese property companies
Onshore market feeling the deluge from Chinese property companies

They have all been heading to the newly opened-up onshore bond market. But could some Chinese property issuers be tempted offshore again as they reach their domestic credit limits, investors start showing signs of fatigue and the spread differential between the two markets narrows

That is certainly the view of Arthur Lau, head of Asian fixed income at PineBridge Investment in Hong Kong. 

He believes the offshore market is starting to become a more cost effective option again even on an after-swap basis, although it is never likely to reach the heights it did at its peak in 2014 when Chinese property developers raised...

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