China Developers Rally as Beijing Alleviates Liquidity Fears
- Stocks and junk bonds rise after LPR cut, loan support pledge
- Invesco says more non-traditional stimulus measures are needed
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Chinese developer stocks rallied after a deeper-than-expected cut in a mortgage reference rate and Beijing’s pledge of financing help, as policymakers showed more urgency to ease a severe property crisis.
A Bloomberg Intelligence index tracking developers rose as much as 1.9%, before paring the gains to 1.2% in afternoon trading. Their junk dollar bonds were up 0.5 cent to 5 cents on the dollar, according to credit traders.