Sep
03

Investors Can’t Get Enough of China’s Property Developer Bonds

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  • Demand for Greentown China’s dollar notes 13.3 times offer
  • Moody’s sees negative outlooks for builders tailing off

Dollar bonds sold by China’s property developers are being lapped up by investors, lured by the companies’ stronger earnings and improving credit profiles.

Notes sold in July and August by Chinese developers attracted orders 6.3 times the issue size, compared with 2.5 times in May and June, according to data compiled by Bloomberg where deal statistics are available. The firms are taking advantage of the better sentiment, with bond sales rising to a record $35.2 billion this year.

“In China, we still like the property sector,” said Ken Hu, chief investment officer for Asia-Pacific fixed income at Invesco Hong Kong Ltd. Property companies’ sales and cash flows are pretty strong and their inventory levels have been improving, he said…

Investors Can’t Get Enough of China’s Property Developer Bonds

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Categories : Real Estate

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