China Builder Fantasia’s Dollar Bonds Tumble as Debt Test Nears

Chinese developer Fantasia Holdings Group Co.’s dollar bonds plummeted as the company inches closer to a $208.2 million debt repayment deadline Monday.

The firm’s bond due Dec. 17 fell about 29 cents on the dollar to 38.2 cents, set for its biggest-ever daily drop, a move mirrored by another dollar note maturing the next day, Bloomberg-compiled prices show. That brings the prices of those securities significantly closer to Fantasia’s notes maturing in 2023, which are at about 25 cents on the dollar.

Investor confidence in the Shenzhen-headquartered firm is dwindling. Dramatic declines in the firm’s dollar bonds maturing later this ...