Dollar bonds of Country Garden, Road King and Sino-Ocean were higher by over 2.5% across the curve yesterday. The former was on account of the developer planning to buy residential land in local government auctions for the first time since December 2021, in signs of easing stresses in the property sector. Other developers’ bonds like Road King and Sino-Ocean also saw a move higher.
Separately, Evergrande is yet to reach an agreement with its bondholders on a debt restructuring framework, as per sources. Evergrande had earlier said that it wanted to get support from them by early March ahead of its March 20 court hearing in Hong Kong regarding a winding-up petition. Evergrande’s restructuring details have been much awaited after several delays since mid-2022. Its dollar bonds were trading stable at over 9 cents on the dollar.