Buyers of distressed loans are watching China's property market closely as debt soars and growth falters.

 

Nomura Holdings Inc and Bank of America Corp said they will pay more attention to Chinese developers in 2015, having profited from trades in India, Australia, South Korea and Indonesia.

 

"There's been a lot of nervousness around the real estate sector in China," said Andrew Tan, Nomura's head of secondary trading for loans and special situations in Asia ex-Japan.

 

"We've seen some selloff in terms of some of the bigger names in the loan space which, typically, you don't see being offered in the market. They are at high-yield, stressed levels."

 

The number of publicly traded developers with liabilities exceeding equity in China has jumped to 136 out of 334, or more than 40 percent, from 57 in 2007, according to data compiled by Bloomberg. China's leaders are discussing lowering next year's economic growth target amid falling home prices and rising inventory.

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