An index tracking high-yield dollar bonds of Chinese developers (.IBXXAX13) has jumped more than 70% from its Nov. 3 low, but is still down about 70% from its peak in May, 2021. A growing list of Chinese developers have entered into or are preparing to kick-off debt restructuring talks with offshore bondholders after defaulting on payments. Of 241 dollar-denominated bonds issued by Chinese property firms, 211 are trading in distressed territory below 50 cents on the dollar, Refinitiv data shows. The recent rally in developers' shares and bonds on the back of funding support measures, however, has given investors some respite. "A recovery in property sales would be firmer in a re-opening scenario," said Justin Ong of Columbia Threadneedle, which holds China property bonds, as it would offer a clearer timeline for re-opening.

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