Hong Kong Builder New World Makes Progress Escaping Distress

New World Development Co., the Hong Kong property firm that’s become emblematic of the city’s efforts to shake off a property slump, has rallied on steps to shore up liquidity.

That’s lifted some of its bonds out of distressed territory. Five out of its 11 dollar notes issued before a key refinancing last year are trading between 77 cents and 95 cents, while several of its perpetual notes have posted gains of more than 200% over the past 12 months. The rebound has helped make it the best performing name in Bloomberg’s Asia high-yield corporate index this year and last.