Chinese Junk Bonds Jump to Three-Year High on Property Stimulus

China’s junk dollar bonds are rallying to their highest level in three years amid government efforts to shore up the bruised property sector.

The average price of Chinese high-yield dollar bonds has jumped 2.1 cents so far this week and is set for the biggest weekly advance in seven months. Prices have risen to 85.5 cents, according to a Bloomberg index, the highest since September 2021, just before Fantasia Holdings Group Co.’s surprise default cast a spotlight on the extent of China’s property-debt problems.

Top gainers this month included some of the survivors of the crisis, including China Vanke ...