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BlackRock and Vanguard are among the largest shareholders in Evergrande that have posted hundreds of millions of dollars in paper losses following a more than 80% share price drop in the troubled Chinese property developer.
Data from S&P Capital IQ show US-based Vanguard, Evergrande’s third-largest shareholder, has seen the market value of its holding plummet by $156m since the beginning of January as the Chinese company teeters on the brink of collapse.
BlackRock added 31.3 million notes of Evergrande’s debt between January and August 2021, pushing its stake in the company to 1% of the assets in its $1.7 billion Asian High Yield Bond Fund, according to Morningstar.
HSBC increased its positions in the company by 40% through July, according to Morningstar. UBS increased its position by 25% through May, the latest date available in the fund tracker’s database.
None of the companies responded to requests to comment for this story.
At the same time, other large fund firms such as Fidelity, Pimco, and Allianz cut their positions in the company by up to 47% between January and July, Morningstar said.
Growing fears that Evergrande will default on its $305 billion in liabilities has rattled global markets this week as investors worry that a downturn in the Chinese property market will spill over into the global economy.
(Reporting by David Randall; Editing by Mark Porter)
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