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Chinese Property Bond Rally Fades as Investors Seek Clarity

  • Country Garden, Sunac notes drop after rising by record
  • Regulators may ease curbs on developers’ presale funding
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WATCH: Chinese developer shares and bonds saw record rallies on Wednesday after the PBOC pledged to use more tools to spur the economy. Stephen Engle reports.Source: Bloomberg
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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.