China’s Distressed Developers Soar in Wave of Speculative Buying

Investors bet on further stimulus to rescue property sector
Sunac China, Evergrande lead gains in developer stocks gauge

WATCH: Speculative bets that Chinese authorities will widen support for the property sector send some of the country’s ailing developers surging by the most on record. Charlotte Yang reports.Source: Bloomberg

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By Charlotte Yang and Jeanny Yu

September 6, 2023 at 3:46 AM UTC

Updated on

September 6, 2023 at 9:11 AM UTC

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Speculative bets that Chinese authorities will widen support for the property sector sent some of the country’s ailing developers surging by the most on record.

A Bloomberg Intelligence gauge tracking Chinese builders gained nearly 10% Wednesday, the most in more than a month. Heavily indebted developers with depressed valuations were among those to rally the most, with Sunac China Holdings Ltd. soaring 68% alongside a spike in trading volume. China Evergrande Group closed up 83% — capping the biggest gain since its 2009 listing.