China's property developers may struggle to pay annual bonuses as local governments lock up funds and bond maturities double, says Nomura.

Chinese property developer said it also did not pay a coupon totalling $105 million for notes due in 2023, 2025, and 2026, with the grace period for the first two already expired

Failure to make payments, followed by a string of credit rating downgrades of indebted developers, has roiled China's high-yield debt

A Shanghai Shimao Co bond that matures in January 2022 rose 11.7%, making it the top gainer on Shanghai Stock Exchange's corporate bond market

CSRC said it would properly resolve bond default risks and crack down on "fake financial exchanges" after a meeting to discuss orders from last week's Central Economic Work Conference

The low price pushed up the yield, which moves inversely to the price, on the bonds to 9.75%, underscoring their lacklustre reception

November was first full month Chinese government bonds were included in FTSE Russell's World Government Bond Index

Evergrande shares hit a record low on Wednesday after a missed debt payment left the firm at risk of becoming China's biggest defaulter, and trading in Kaisa Group stock was suspended

Some bondholders did not receive coupon payments due on Monday in what could be group's first offshore default on a public bond. That will trigger cross-defaults on $19bn bonds in global markets

Default shows some developers continue to struggle even as Beijing has started to marginally relax financing to meet developers' normal funding needs

The demands were due to rating downgrades and the company warned shareholders it might be unable to pay up due to a liquidity crunch

Property developer sought to exchange its 6.5% offshore bonds due December 7 for new notes due June 6, 2023, at the same interest rate