Huarong Trading Dwindles in Onshore Bond Market as Bids Vanish
- Buyers and sellers can’t agree on price, creating wide spread
- Thin liquidity can exacerbate volatility in Huarong’s bonds
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Trading activity in China Huarong Asset Management Co.’s onshore bonds has shrunk as investors fail to agree on a price for the securities amid uncertainty over the company’s future.
The level at which buyers are willing to buy is widely different from the price sellers are willing to sell, resulting in a wide bid-ask spread and low deal volume, according to dealers and investors with knowledge of the matter. The majority of offers to sell Huarong bonds ranged from 70 yuan to 80 yuan in recent weeks, said two of the people, who declined to be identified discussing market activity.