Kaisa’s Dollar Bonds Rise on State Tie-Up: Evergrande Update
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Kaisa Group Holdings Ltd. dollar bonds rallied after the defaulted developer unveiled a strategic tie-up with a state-controlled builder and one of China’s major bad-debt managers, as the government works to contain the sector’s cash crunch.
Some notes were on pace for their biggest gains in months as Kaisa announced the pact with China Merchants Shekou Industrial Zone Holdings Co. and China Great Wall Asset Management Co. to develop real estate, tourism and other businesses in an area including Hong Kong and Macau. China’s state-controlled distressed-asset firms have been moving to support some developers at the urging of Beijing.