Property bonds rally fuelled by government stimulus measures
Gains seen in bonds of leading developers Vanke, Longfor
Bonds of developers in default, such Country Garden, also gain
Investors watching for home sales numbers for next move

HONG KONG, Oct 4 Reuters Some Chinese and global institutional investors are revisiting Chinese property bonds, betting on an improvement in outlook as the government accelerates efforts to boost economic growth and revive a property sector in the throes of a debt crisis.

Investors began returning after the announcement on Tuesday of the most aggressive stimulus measures since the pandemic, mostly targeting the property sector and triggering a rally in the offshore bonds of property developers.

Credit investment specialist Beijing G Capital Private Fund Management Center placed orders worth a few dozens of millions of yuan to buy property bonds for the first time in several months, said its chairman, Li Gen.

We saw determination to revive the property sector … which is a sea change from efforts of recent years, said Li.

The rally underscores the extent to which the stimulus is restoring confidence in the sector, though analysts are split on prospects for revival in the near term.

The sector, a pillar of the world39;s secondlargest economy, has lurched from one crisis to another since 2021 after a regulatory crackdown on debtfuelled construction spooked investors and lenders alike, squeezing access to funds.

Sales slowed and…