China’s high-yield dollar notes, dominated by those of real estate firms, lost 1.8% to 78 cents last week, ending a record 13-week winning streak.
The recent rally was more of a reflection of better sentiment than material improvement in industry fundamentals, according to some investors.
Some investors say the recent rally offers enough evidence that the worst of China’s property crisis is over.
The diverging outlooks are showing up in the primary dollar bond market, where global investment banks are renewing efforts to revive developers’ debt sales following a yearlong drought.
The pause to the bull run coincides with other signs of a market reaching a critical juncture, as investors debate the merits of chasing further policy-induced upside against caution arising from a persistent housing slump and default risks.
