China’s Shattered Property Bond Market Finds Hope in Sunac Deal

For two hours on an early February morning, Sunac China Holdings Ltd. Chief Financial Officer Gao Xi delivered a tirade against bondholders — hitting the table as he told them the distressed developer had already made its best restructuring offer.

The negotiations were fraught enough that some creditors considered walking away during lunch. But Gao returned that afternoon with an apology, paving the way for a deal that took effect last week and marked the first of its kind by a major Chinese builder since Beijing’s deleveraging push three years ago set off a historic industry crisis.

With much of ...