Chinese concern on bond market

Nearly two months after reports about Chinese regulators’ scrutiny of the country’s top dealmakers, the concerns have left a mark in the local bond market, where one of those companies is facing yields double the national average.

Yields on onshore securities without put or call options of Dalian Wanda Commercial Properties, which has an AAA rating onshore, are above 9%, according to valuations compiled by Chinabond.

That compares with the average 4.55% yield on top-rated notes due in three years from all corporate borrowers in the country. It’s also higher than the 5.8% average yield on three-year notes with AA- ratings, considered junk in China.