Evergrande Contagion May Trigger Wave of Defaults for Developers

Chinese property firms may face a wave of defaults next year if China Evergrande Group’s deepening debt crisis shuts access to a key source of funding and conditions don’t ease for heavily indebted borrowers.

There’s growing alarm that the liquidity crisis at Evergrande will spill over to other developers as President Xi Jinping maintains measures to cool the property market. Fears of contagion risks intensified this week after a surprise default by Fantasia Holdings Group Co. spurred a dramatic selloff in the offshore market. That sent yields on China dollar junk bonds to 16.9%, the highest in about a ...