Chinese Builders Rally on Plans for State-Guaranteed Bond Deals
- Select firms to have new onshore debt backed by state: people
- Investors say rebound in home sales key to any sustained rally
Country Garden Holdings Co.'s Fengming Haishang residential development in Shanghai, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s embattled developers surged in the stock and bond markets Tuesday on news that authorities are planning to help some raise fresh financing, adding to signs of official support for an industry grappling with a debt crisis and slumping home sales.
Notes from Country Garden Holdings Co., CIFI Holdings Group Co. and Longfor Group Holdings Ltd. soared at least 11 cents on the dollar Tuesday, according to Bloomberg-compiled prices, set for the biggest gains since March. Their shares surged more than 9% in Hong Kong and a Bloomberg Intelligence gauge of the sector gained 2.4%, the most in three weeks.