Developer Stocks Surge After China Pledge: Evergrande Update
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Stronger Chinese developers’ dollar bonds jumped and stocks surged after Beijing’s call for more property industry support, but analysts cautioned that it may be too late to restore confidence in a sector hit by a wave of defaults.
Bonds of builders such as Country Garden Holdings Co. and CIFI Holdings Group Co. soared and an index of developer shares posted a record gain. Shares in Sunac China Holdings Ltd. surged 59% as bearish bets were unwound. The firm was also downgraded three notches to B- by S&P Global Ratings.