Chinese Govt to Shore Up Domestic Bond Market

STCN: 监管推进有担保发债试点 房地产股债大涨

On August 16, it was rumored that the regulator held a closed-door meeting with some developers, and planned to designate state-owned enterprises to guarantee and underwrite demonstration housing companies to issue bonds to provide liquidity support for housing companies.

A number of real estate companies and people in the capital market confirmed the authenticity of the news to the Economic Observer Network. However, given that the bond market has been extremely sensitive recently, and the pilot has not really been implemented, the possibility of variables cannot be ruled out. Therefore, the regulators hope to participate in To keep a low profile.

Marketwatch: Chinese property stocks rally on reports of government bond issue

Chinese regulators have reportedly ordered state-owned China Bond Insurance Co. Ltd to guarantee onshore bond issuances to a number of developers in the struggling sector, according to Reuters.

Stock prices in the named shortlist bounced up in response to the news, with Hong-Kong-listed shares in property developer Country Garden Holdings up as much as 18% to 2.74 Hong Kong dollars early in the trading day and pared its gains later on Tuesday to a 9% rise

Shares of Gemdale Properties rose 5% while investors snapped up shares in Longfor Properties which reached highs of HK$26.40, a rise of almost 19%, and CIFI Holdings which rallied 12.9% to HK$2.22.

China Bond Insurance Co provides financial guarantee services and will provide “full amount, unconditional and irrevocable joint liability guarantee” to the medium-term notes for a number of developers, according to the Reuters sources.