Chinese Developers Rally on Prospects of Additional Financing
- Sector’s stocks, dollar bonds climb as banks offer new credit
- Developers plan guaranteed notes while RRR may be cut again
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Chinese developers rebounded Thursday as more signs of government policy support emerged for the debt-ravaged sector.
A Bloomberg Intelligence stock gauge of builders climbed about 7.25%, the most in 10 days, with Country Garden Holdings Co. jumping 20%. Gains in property firms’ dollar bonds were more selective, with investment-grade builder Longfor Group Holdings Ltd. leading outperformers along with Country Garden and Greentown China Holdings Ltd. The sector’s debt and equity had pulled back the past week following a surge to start November.