Dollar bonds of Greenland Holdings rallied 3-6% after the property developer reported Q3 results. While net income stood at RMB 2.93bn ($460mn), down 27% YoY, its revenues rose 30% to RMB 144.1bn ($22.6bn). Greenland said it will soon meet the second regulatory debt metric among the three-red lines i.e., net debt-to-equity, as its net gearing ratio fell during the first three quarters. The threshold caps the ratio at 100% and in the latest results the ratio stands at 114%, falling from over 140% in the three prior quarters. Greenland’s dollar bonds have recovered from ~45 cents on the dollar two weeks earlier when systemic property market concerns took over, to current levels of 65 cents on the dollar.

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