Delayed Bond Coupons Paid; Resolve Tested: Evergrande Update
- State media say lending to real estate firms surged in October
- Developer stocks post best two-day advance since 2015
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Investor speculation that China will take steps to ease the cash crunch for embattled developers drove property stocks and bonds higher.
A series of articles published in state media in the past few days signal support measures are on the way to help developers tap debt markets, potentially easing a liquidity crunch that began with China Evergrande Group’s meltdown five months ago. Meanwhile, Evergrande again averted default. Customers of international clearing firm Clearstream received overdue interest payments on three U.S. dollar bonds issued by Evergrande, a spokesperson for Clearstream said.