China declines mandatory convertible bond registrations for developers, Michael Pettis notes - Traders Union
China declines mandatory convertible bond registrations for developers, Michael Pettis notes - Traders Union
Source: Traders Union
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DW NOTE
China is telling developers they can no longer register mandatory convertible bonds — debt that forces conversion to equity if the company can't pay cash. That closes the last instrument property firms used to raise money without admitting they're insolvent. Beijing spent two years demanding deleveraging, then starved firms of capital when they complied. Now it's shutting the bailout hatch from the inside.