Evergrande fixed! Buy all the developer things…

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Evergrande is fixed! It’s been the biggest two-day rally in Chinese developer stocks that anybody can remember:

So, are houses for speculating on, not living in again? No.

Shares and bonds gained for a second day after reports that regulators may adjust rules to allow real estate firms to sell debt in the domestic interbank market. Another report showed state-owned enterprises are pushing for the right to increase borrowing for mergers, which could make it easier for them to snap up struggling developers. State-run banks meanwhile boosted lending to the industry last month, state media reported.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.