(Bloomberg) — Only seven weeks ago, Zhenro Properties Group Ltd. looked like a rare beacon of strength in a Chinese real estate industry reeling from an unprecedented stretch of defaults.
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The company had just announced plans to redeem a perpetual bond and boasted that one of its units had secured a 9.14 billion yuan ($1.44 billion) credit line from state-owned Bank of China Ltd. Zhenro’s short-dated bonds were trading near 80 cents on the dollar, compared with 17 cents for embattled property giant China Evergrande Group.
Now Zhenro has become the latest developer to warn it may not meet its obligations, an about-face that’s extreme even by the standards of an industry where negative surprises have multiplied over the past year. Its shares and bonds plunged on Monday.
The company’s sudden and mysterious slide into distress is raising investor anxiety toward…
