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BlackRock, HSBC among largest buyers of Evergrande debt: Morningstar

Stock MarketsSep 22, 2021 01:05AM ET
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© Reuters. FILE PHOTO: The China Evergrande Centre building sign is seen in Hong Kong, China. August 25, 2021. REUTERS/Tyrone Siu/File Photo

By David Randall

NEW YORK (Reuters) - Fund giant BlackRock (NYSE:BLK) and investment banks HSBC and UBS were among the largest buyers of the debt of embattled Chinese real estate developer Evergrande Inc, Morningstar data shows.

BlackRock added 31.3 million notes of Evergrande's debt between January and August 2021, pushing its stake in the company to 1% of the assets in its $1.7 billion Asian High Yield Bond Fund, according to Morningstar.

HSBC increased its positions in the company by 40% through July, according to Morningstar. UBS increased its position by 25% through May, the latest date available in the fund tracker's database.

None of the companies responded to requests to comment for this story.

At the same time, other large fund firms such as Fidelity, Pimco, and Allianz (DE:ALVG) cut their positions in the company by up to 47% between January and July, Morningstar said.

Growing fears that Evergrande will default on its $305 billion in liabilities has rattled global markets this week as investors worry that a downturn in the Chinese property market will spill over into the global economy.

BlackRock, HSBC among largest buyers of Evergrande debt: Morningstar
 

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Comments (3)
Per Nordberg
Per Nordberg Sep 22, 2021 2:13AM ET
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But what is the total value of the Evergrand debt that BlackRock and HSBC have today? If they are the biggest holders of 305 Billion it can´t just be like 30 million each. Something key is intentionally left out here.
Studd Muffin
FlipTicks Sep 22, 2021 2:13AM ET
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They dont have that much. They are the largest foreign holders of the debt and there is a very limited amount of evergrand debt held outside of china. Relatively speaking.... This is NOT contagion
Edward Chong
Edward Chong Sep 22, 2021 1:20AM ET
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blackrock is stuck. they dont have a choice.
Lantz Wheeler
Lantz Wheeler Sep 22, 2021 1:20AM ET
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Edward im fascinated by your comment. Would you mind sharing why you say that? Thanks man!
Muhamed Jaffir
Muhamed Jaffir Sep 22, 2021 1:09AM ET
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BlackRock and China take a hit, today is a good day.
 
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