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

(Bloomberg) — 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. Ltd.’s surprise default cast a spotlight on the extent of China’s property-debt problems.