Yuexiu Property bonds widen amid talk of mis-pricing

Yuexiu Property, the company formerly known as Guangzhou Investment Company, prices an $850 million debut bond that sells off heavily in secondary.
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Guangzhou IFC, which was sold to Yuexiu Reit last year
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<div style="text-align: left;"> Guangzhou IFC, which was sold to Yuexiu Reit last year </div>

Chinese state-owned property company Yuexiu Property priced a $850 million dual-tranche debut bond deal late Wednesday night, but the bonds sank in secondary trade on Thursday, leading some investors to criticise the deal’s execution.

“I think there was a mispricing,” said one investor. “There were different expectations between investors and the leads about where the bonds were supposed to come at. I think it came too tight. It’s a case of bad habits dying hard with these new issues. The first few deals such as Country Garden have performed, but since then pricing has gotten way too tight.”

The leads Bank of China, DBS, HSBC...

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