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Evergrande Traders Sell Into Stock Gains With Dollar Coupon Due

  • Developer’s stock rises as much as 32%, the most since 2009
  • Gains spark broader rally in Chinese developer shares, bonds
China Evergrande Group's Life in Venice real estate and tourism development in Qidong, Jiangsu province, China.

China Evergrande Group's Life in Venice real estate and tourism development in Qidong, Jiangsu province, China.

Photographer: Qilai Shen/Bloomberg
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China Evergrande Group’s stock rallied before paring the advance, an indication that investors remain wary over debt talks as the distressed developer faces a key coupon payment test on a dollar bond. 

The Hong Kong-listed shares gave up gains of as much as 32% to end Thursday nearly 18% higher. The earlier surge came as a delayed reaction to news that a unit of the developer had negotiated interest payments on yuan notes, with trading shut Wednesday for a holiday.