BlackRock, UBS Among Funds Cutting China Property Exposure
- HSBC, PIMCO, Fidelity also reduced holdings in the first half
- Developer bonds saw 59% decline in investments: Morningstar
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Asia’s largest high-yield bond funds are steering clear of China’s real estate sector as a worsening liquidity crisis weighs on the debt, according to research firm Morningstar Inc.
The average weighting of China property bonds in the Asian junk funds dropped to 16% in June from almost 28% at the end of last year, as a crackdown on borrowing and a plunge in housing sales continue to batter the industry.