Funds managed by HSBC and BlackRock reportedly increased their holdings in the crisis-struck Chinese developer Evergrande, despite concerns over its $300bn debt.

BlackRock purchased five different Evergrande dollar bonds through one of its high-yield funds in this August, Financial Times reported citing data by Morningstar.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The firm previously had holdings worth $18m in the developer.

The Morningstar data also shows that a high yield fund managed by HSBC also raised its stake in Evergrande by 38% since February this year.

Due to decreasing prices, the value of its total exposure at $31m came down during the period.

Blackrock refused to offer any comment on the news.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

HSBC’s asset management unit told the publication that the firm ‘closely monitor developments in the real estate sector as with many sectors it in invest in.’

However, Swiss wealth management giant UBS took note of Evergrande’s volatility and subsequently warned its wealthy clients about the risk.

In June last year, UBS chief investment officer stuck Evergrande on the bank’s watchlist and the Evergrande securities were removed from rich clients’ portfolios.

UBS acquired Evergrande securities this year, according to Morningstar data. The size of the Evergrande debts held by the firm is not clear.

Evergrande, which is currently on the brink of a default, has two repayments due this month, according to various reports.

The firm is expected to pay some $84m on its bond this week while another repayment worth over $47m, for a different bond, is due on 29 September 2021.

Reports suggest that the China authorities are likely to step in for Evergrande’s rescue and save it from collapsing.