China Developers Jump on Possible Easing of Bond Issue Rules
- Securities Times says banks will invest in developer bonds
- Many real estate firms are unable to tap offshore bond market
Apartment blocks under construction in Xining, Qinghai province, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Chinese developers’ bonds and stocks rallied on a report that authorities are likely to loosen controls for the nation’s real estate companies to issue local-currency notes, part of efforts to prevent a further deterioration in their financing.
The Securities Times said the easing will center on the interbank bond market, which has seen issuance from developers fall in the past year. While the report didn’t specify which rules would be loosened, Chinese junk-rated dollar bonds surged the most in three weeks, and an index of developer shares saw the biggest jump since February.