China’s biggest private property developer Country Garden suspends trading of its 11 onshore bonds from Monday, according to filings to the Shenzhen Stock Exchange on Saturday, shared via Nikkei Asia.
On the other hand, Reuters quotes China’s Nacity Property Service Group and KBC Corporation while citing the non-receipt of the payment on maturing investment products from Zhongrong International Trust Co. “The disclosure could deepen market concerns over the health of Chinese conglomerate Zhongzhi Enterprise Group, which controls Zhongrong International and a handful of listed companies,” said Reuters.
It’s worth noting that the fears of a liquidity crunch in Chinese markets previously favored the US Treasury bond yields and the US Dollar. However, the Dragon Nation’s push for more liquidity infusion and the defense of the onshore Yuan (CNY) prod the pessimists.
Market reaction
The news keeps a tab on the riskier assets and hence the AUD/USD stays pressured around the 0.6700 round figures.
Also read: AUD/USD floats above 0.6480 support ahead of Australia wage growth, RBA/FOMC Minutes
Source: https://www.fxstreet.com/news/chinas-country-garden-zhongrong-trust-renew-debt-market-fears-202308132346