Reuters

WeChat bargain hunters seek profits in China property bond rout

In late October, as a growing liquidity crisis across China’s property sector walloped developers’ bonds, a group of Chinese finance professionals got together on the messaging app WeChat to pool their funds and buy the unloved debt. The first target was a 5.3% January 2022 bond issued by a unit of Yango Group, trading at around half its face value and yielding in excess of 400%. Punters were invited, via WeChat, to pool a minimum of $50,000 each for a chance to double their money, with a downside likely limited at 50%, according to a source who was invited to participate.

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