China’s real estate sector rankled investors this week as the country’s second largest property developer missed a deadline to pay its overseas bondholders. Evergrande, which has built residences in every one of China’s regions, now has 30 days to cure the coupon payment before it defaults.
Investor uncertainty over China has grown since regulators scuttled Blackstone Group’s $3 billion deal to acquire property developer Soho China amid a political crackdown on wealthy executives, including billionaire Soho China founders Pan Shiyi and Zhang Xin.
Blackstone shares fell 6.4 percent this week, partially recovering from a selloff Monday sparked by Evergrande’s debt problems. Global private equity firm KKR fell 6.7 percent this week, while Apollo Global Management nearly eked out a recovery, its share price ending the week down 0.6 percent.
Share prices closed Friday about 20 percent above their pre-pandemic peak for Blackstone and Apollo,…