China property rebound sparks demand for bonds

Shanghai

A REBOUND in China's property market has spurred onshore investor demand for bonds issued by developers, helping cut their borrowing costs.

Longfor Properties Co sold five-year AAA-rated notes to yield 3.93 per cent on Monday, compared with the average 4.09 per cent rate on securities with similar maturities and credit scores in the secondary market. Beijing Tian Heng Development Group issued AA-rated five-year debt at 4.12 per cent on July 22, less than the 5.22 per cent on comparable debentures.