DISTRESS WATCH: China Property Bonds Rally Amid State Support

The dollar amount of bonds and loans in the Bloomberg News distressed debt tracker fell as a renewed effort by Chinese state authorities to revive the real estate sector lifted some of the developers’ bonds.

The global distressed debt pile shrank 2% in the week ended May 10 to $588.1 billion, data compiled by Bloomberg show.

Chinese builders’ bonds, including some of those issued by China Vanke and Longfor, emerged out of distress as the cities of Hangzhou and Xi’an removed curbs on residential property purchases. Vanke bonds also gained after the technology hub of Shenzhen, where the ...