The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

SC Lowy: Evergrande brings investment opportunity for the right names

As more Chinese high-yield names default in the real-estate sector, one of the region’s leading distressed debt investors shares his views on the state of the market – and the investment opportunities that come with it.

An unfinished residential building developed by Evergrande Group, in Luoyang, China. Photo: Reuters

The contagion from Evergrande is getting worse. On Tuesday, Sinic Holdings became the latest name to default on offshore bonds, following Evergrande and Fantasia Holdings.

The latest in a continuing series of downgrades from the rating agencies has afflicted Modern Land, which conducted a consent solicitation to avoid default in October, and China Aoyuan.

But are opportunities appearing amid the ordure? Euromoney asked SC Lowy founder and chief investment officer Soo Cheon Lee what Asia’s most prominent home-grown high-yield and distressed asset manager makes of what he is seeing.

Clearly, there has been an evolution in recent weeks and what at first looked like a containable one-off event has spread.

The billion-dollar question is how or when developers are going to repay their offshore bonds
Soo Cheon Lee, SC Lowy

“When Evergrande started gapping down, there was some impact for the rest of the Chinese property developers, but quickly we saw some differentiation between Evergrande and the others,” Lee says.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree