Chinese property developers and property management companies stage a strong rally in Hong Kong on report that a Chinese state-owned credit enhancement institution is reportedly planning to provide guarantee in full amount to help private-run homebuilders with bond issuance.
CIFI Holdings is up 15%, Longfor Group up 13.3%, Country Garden Services up nearly 13%, Times China up nearly 10%, Powerlong Real Estate up more than 9%, Seazen Holdings up more than 8%.
Ever Sunshine Lifestyle Services is surging 14.4%, Country Garden Services up 12.4%, Sunac Srvices up 6.8%, Jinke Services up 6.7%.
Chinese regulators have reportedly instructed state-owned China Bond Insurance Co. Ltd. to provide guarantees for onshore bond issuance by a few private property developers including Longfor Group and CIFI Holdings.
China Bond Insurance Co is said to provide “full amount, unconditional and irrevocable joint liability guarantee” to these medium-term notes, the report said. The guarantee provides more protection than credit risk management tools. Two of the sources said Longfor has already sold 3-year and 5-year medium term notes totalling up to 1.5 billion yuan with a guarantee from China Bond Insurance Co, according to media reports.
