Dollar bonds of Chinese property developers across the board saw its bonds rally on the news of loosening rules regarding local-currency issuances. Reports had suggested yesterday that that regulators may adjust rules so that developers can issue debt in the domestic interbank market. Another report showed state-owned enterprises were pushing for the right to increase borrowing for mergers, which could make it easier for them to buy out struggling developers. While exact details of the news were not available, this has seen a boost in sentiment across the real estate space. Raymond Cheng, head of China-Hong Kong research at CGS-CIMB Securities Ltd. says, “The reopening of the onshore bond market is critical. Without this, the market had previously expected that half of developers would have difficulties repaying bonds due in the next three to six months.”
Relief Rally in Chinese Property Developers’ Dollar Bonds on News of Easing Rules
