Since October 2021, offshore bonds issued by Chinese property developers have been experiencing a wave of defaults. Wilson Yan and Alan Xu, Equity Partners at Zhong Lun Law Firm, discussed the disposal and settlement of Chinese offshore property bonds after default at a seminar on 7 January. They also identified some cost-effective solutions for bond investors to recover financial losses. 

Yan pointed out that some developers had delayed and resisted making post-default bond settlements. In such cases, bondholders were advised to transfer defaulted bonds at a low price, so as to minimize losses. Xu also explained the procedures of bond transfer and debt restructuring, as well as the advantages and disadvantages of the various ways of dealing with post-default bonds