STORY: There was a wild ride Tuesday (September 19) for investors in China’s battered property sector.
Shares in big developers jumped following news of new deals to avoid debt defaults.
Sunac China saw its stock surge as much as 14% after it won approval to restructure $9 billion in offshore bonds.
But it then ended the day down 4%, after news broke that it had sought bankruptcy protection in the U.S.
Cash-strapped giant Country Garden also got the OK to extend repayment on more of its bonds.
But its stock also gave up early gains, ending down by over 2% following the Sunac reports.
Tuesday’s news comes as Beijing steps up moves to support the property sector - which accounts for about a quarter of the country’s economy.
That has included measures to ease borrowing costs and help first-time buyers.
Despite all that though, house prices in the country continue to decline.
The latest figures show new home prices fell at their fastest pace in 10 months in August.
Falls in real estate sales and investment also deepened.
One economist told Reuters that Beijing’s stimulus measures would have some effect - but predicted that any turnaround in the property market would be slow and modest.