(Bloomberg) — Chinese developer Radiance Holdings Group Co. defaulted on a $300 million bond after it missed a payment due Wednesday, making it the latest company in the nation’s real estate sector to fail to meet its repayment obligations.
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The Beijing-based builder pointed to extreme pressure in China’s property sector and lack of improvement, in sales in a statement filed to the Hong Kong exchange, saying that it will “exert its utmost effort” to ensure property delivery.
Chinese developers could face more defaults as home sales and buyer confidence remain weak. Policy steps have so far failed to prevent more delinquencies in the bond market. Radiance, whose key onshore unit sold an 800 million yuan ($111 million) note guaranteed by state-owned China Bond Insurance Co. in December, is one of the few developers that has access to refinancing support.
Radiance’s default caps a turbulent month for the builder, during which its bonds soared to 88 cents on the dollar as of Tuesday after trading at a deeply distressed level of around 50 cents two weeks ago.
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