(Bloomberg) -- Not even state-owned firms are safe from the deepening rout in Chinese developer bonds.

Sino Ocean Group Holding Ltd., part-owned by the finance ministry, has become the latest property company to see its bonds slump. Its 4.75% note due 2030 fell Monday to as low as 73.48 cents on the dollar, with spreads over comparable Treasuries widening to a record 800 basis points, according to data compiled by Bloomberg.

That’s despite the firm being rated investment-grade at two global credit assessors and holding about 54 times more cash and equivalents than China Evergrande Group. Sino Ocean’s shares have been doing better, rebounding 35% from their September low. They rose 3.5% Monday.

Stress in the market for Chinese property bonds is reaching extreme levels as surging borrowing costs make refinancing dollar debt too expensive and a slowing housing market shrinks revenue.

China’s finance ministry controls just under 30% of Sino Ocean’s shares, according to data compiled by Bloomberg. State-owned Dajia Insurance Group -- the company that took over most of the operations of troubled Anbang Insurance Group Co. -- holds a similar-sized stake.

 

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