BlackRock among holders of embattled China bond holders

investmentnews.com:

Global investors including BlackRock Inc. and Allianz SE may be key stakeholders to watch in Country Garden Holdings Co.’s debt crisis given their recent exposure to the embattled Chinese property developer’s dollar bonds.

BlackRock held $358.5 million of Country Garden dollar bonds, according to a filing dated Aug. 14. Allianz’s position was $301 million based on a June 30 filing. That was also when filings from others including Fidelity International Ltd. and HSBC Holdings Plc showed they were holders.

The filings don’t necessarily reflect current holdings as some might have changed since the documents were filed, and firms may hold bonds on behalf of clients. Rules on how funds disclose their holdings vary by country. Reported holdings of banks may include those held at asset-management subsidiaries. 

Global creditors’ fate is in focus as Country Garden sits on the brink of its maiden bond default. A missed payment by China’s former biggest developer by contracted sales would send tremors through the country’s debt markets, where offshore creditors have at times gone unpaid when cash went first to domestic peers. 

According to filings dated April 30 and March 31 respectively, Ninety One UK Ltd. and Apollo Asset Management Inc. also held Country Garden dollar bonds. Others banks with exposure included UBS Group AG and JPMorgan Chase & Co., based on their filings earlier this month. Deutsche Bank AG and Banque Lombard Odier & Cie SA had positions, according to filings dated June 30. 

BlackRock, HSBC, Allianz, Fidelity, Ninety One, UBS, JPMorgan, Deutsche Bank and Banque Lombard Odier either declined to comment or didn’t immediately offer comment. Apollo has yet to respond to requests for comment.

Data out Wednesday