Chinese Developer Rally Is Already Fading After Vanke Support
- Investors have grappled with pattern of short-lived rebounds
- Vanke plan is biggest step for developer liquidity shortage
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Chinese developers struggled to extend a rally in credit and share markets Thursday, underscoring investor desire for more government steps to help the property sector.
A Bloomberg index tracking Chinese builder shares fell as much as 3.3%. That was a reversal after an 8.6% jump Wednesday, the biggest in four months, which was sparked by news that authorities were working on a proposal to help government-backed China Vanke Co. plug a funding gap of about 50 billion yuan ($6.8 billion) this year.