China Property Assets Soar as Evergrande Spillover Fears Ease
- Hang Seng Property Index adds as much as 5.2%, most since Feb.
- Evergrande shares jump as much as 32%; dollar bonds also rally
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China Evergrande Group unit’s statement of a negotiated coupon payment is easing fears about risk contagion of the developer’s debt crisis, and analysts say this is presenting opportunities for Chinese property assets.
An onshore arm of the distressed developer said Wednesday it negotiated a yuan bond interest payment, reducing concerns over a potential disorderly debt resolution at Evergrande that sparked a global selloff of risk assets earlier this week. A gauge of Hong Kong-listed real estate stocks rose as much as 5.2%, the most since Feb. 25, while the sector’s dollar bonds also rallied.