The cost of insuring exposure to China's sovereign debt also came under pressure, and five-year credit default swaps jumped 4 basis points to a 16-month high, IHS Markit data showed. The rating downgrades and possible near-term defaults on offshore debt obligations will pile pressure on Chinese developers to access fresh funding to repay notes worth nearly $300 billion due over the next two years.Д«ond prices collapsed at a handful of the most indebted firms, with Fantasia bonds crumbling below 30 cents on the dollar while Kaisa Group and Central China Real Estate also saw price falls. 'This will be a vicious cycle for the developers that are not strong enough, because there is not enough liquidity in the market for everyone.' The liquidity issues have increased as many developers were not able to issue fresh debt to refinance, and as their ability to raise cash from selling properties fell due to new regulations, he said. 'Since the Evergrande crisis, investors have become more worried and focused about Chinese developer's repayment ability,' said Thomas Kwok, head of equity business at Hong Kong brokerage CHIEF Securities. Sinic declined to comment on the ratings downgrades. It said the firm was likely to default on notes totalling $246 million due on Oct. S&P Global Ratings lowered its rating on Sinic, saying it had run into a 'severe liquidity problem and its debt-servicing ability has almost been depleted'. It did not immediately respond to a Reuters request for comment on the rating downgrades.Дeveloper Sinic Holdings (2103.HK) also suffered a ratings downgrades on Tuesday after it announced that certain subsidiaries had missed interest payments on onshore financing arrangements. In a statement, the property developer said that it will assess the potential impact of the non-payment on the group's financial conditions. That followed downgrading of the company by rating agencies, citing weak recovery prospects for bondholders after default as well as concerns about the company's disclosure and governance practices. The possible collapse of one of China's biggest borrowers has triggered worries about contagion risks to the property sector in the world's second-largest economy, as its debt-laden peers are hit with rating downgrades on looming defaults.Д¬hinese property bonds and shares came under heavy selling pressure, a day after Chinese homebuilder Fantasia Holdings' (1777.HK) said it had failed to make a $206 million international market debt payment on time. Last month it missed coupon payments on two dollar bond tranches and is scrambling to sell assets to pay creditors, prioritising repayment to onshore lenders in the last few weeks. Once China's top-selling developer, Evergrande (3333.HK) is facing one of the country's largest-ever debt restructurings as it wrestles with more than $300 billion in liabilities, including nearly $20 billion in offshore debt. HONG KONG/LONDON, Oct 5 (Reuters) - Growing worries about defaults at Chinese property developers triggered a rout in their shares and bonds on Tuesday with fresh credit rating downgrades and uncertainty about the fate of cash-strapped China Evergrande Group sapping investor sentiment.

Property list editor