(Bloomberg) -- Chinese real estate stocks rose in Hong Kong as China Evergrande Group shares surged amid hopes the troubled developer will make progress in dealing with payments that are coming due.
The Hang Seng Property Index rallied as much as 5.2%, with Country Garden Services Holdings and Longfor Group Holdings each advancing at least 11%. Evergrande surged as much 32%.
Evergrande has resolved a domestic bond coupon that’s due and investors are on tenterhooks as an interest payment deadline for dollar bonds also looms. Many investors expect Beijing will step in to restructure the troubled developer to avoid wider contagion, but there has been no official word on this.
China high-yield dollar bonds, dominated by the property sector, also climbed 3 cents on the dollar Thursday morning, according to credit traders.
Providing some relief, U.S. shares took in their stride the prospect of a reduction in Federal Reserve stimulus as early as November.
Holidays this week across much of Asia have contributed to volatility. Mainland China’s equities markets were closed Monday and Tuesday while Hong Kong was closed Wednesday.
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