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China Property Stocks, Bonds Rally After Report of $85 Billion Lifeline

  • ‘Worst time of property tightening is likely behind us’: Citi
  • China property stocks gauge up 2.6%; KWG, Country Garden lead
A Country Garden Holdings Co. residential development in Shanghai.

A Country Garden Holdings Co. residential development in Shanghai.

Photographer: Qilai Shen/Bloomberg
Updated on

Optimism that the worst of China’s property slump is over boosted markets after Bloomberg reported that regulators told the biggest state-owned banks to provide financing worth at least $85 billion to the embattled sector.  

KWG Group Holdings Ltd. and Country Garden Holdings Co. shares jumped more 8% on Monday, helping lift a gauge of real estate stocks by as much as 2.6%. Meanwhile, higher-rated developer dollar bonds rebounded, with some notes snapping a two-week losing streak. Mainland markets are closed this week for a holiday.