China’s housing crisis has already chewed through the country’s more notorious developers, particularly Evergrande—which has defaulted on multiple bonds and is struggling to finish apartments for buyers who have already paid.
But the sales crisis now risks dragging down the good boys of the industry too. The stocks and bonds of Chinese property developers rallied Tuesday following media reports that the government will guarantees new bond issues from some healthier private developers. Shares of the companies mentioned jumped: Longfor 12% and Country Garden 9%.
