Shanghai Shimao says repayment of 1 bln yuan bond is uncertain

BY Reuters | CORPORATE | 09/27/22 06:07 AM EDT

SHANGHAI, Sept 27 (Reuters) - Chinese real estate developer Shanghai Shimao co said the repayment of a 1 billion yuan bond due Oct. 21 was uncertain.

The developer said it will negotiate with bondholders to reach an agreement on the repayment of the bond, it said in a statement on Tuesday. (Reporting by Shanghai Newsroom, Editing by Louise Heavens)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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