Covid Turmoil Threatens Rebound of China Developers

(Bloomberg) — Despite a disastrous year for China’s property sector, markets turned from extreme pessimism to euphoria in just a matter of weeks thanks to Beijing’s policy bazooka. Now there are growing signs the rally is faltering.  

Real estate shares have entered a technical correction after a run-up of 88% over the six weeks through early December. Weak homebuyer confidence and an uncertain economic recovery are threatening to outweigh policy support measures, including expanding a key bond-financing program to private developers and lifting a ban on equity refinancing.