A record-breaking rally in Chinese property bonds petered out on Thursday amid growing investor doubt over how much a reported plan to allow developers greater access to funds from presold homes will benefit distressed firms.
High yield notes fell as much as 3 cents on the dollar after jumping Wednesday following the reports. Bonds of Country Garden Holdings Co. declined after having rallied by a record the previous day. Gains extended in the stock market, with an index of developer shares rising 3.6% as traders cited short covering.
