China developers bite the bond bullet with funding costs spiking

HONG KONG: Some Chinese developers were quick to complete the bulk of their refinancing early in the year. Those who waited now risk paying dearly for their tardiness, with borrowing costs doubling since January.

An added complication for developers is that China’s National Development and Reform Commission (NDRC) is said to have told several market participants that it is considering stricter assessments for companies looking to extend the validity of their offshore debt issuance quotas to next year, forcing some firms to borrow now rather than wait for market conditions to improve.