Overseas money tentatively returns to China’s real estate

Foreign investors have returned to China’s property bonds following government intervention. A sharp recovery in values over the past two months is being interpreted as a sign that efforts by Chinese authorities to bolster the hard-hit sector are working. China’s high-yield dollar bond index, which is dominated by the property developers at the heart of a market meltdown over the past two years, has recovered almost 50% from the record low hit in early November. Foreign investors, which quit the market for developer bonds en masse during a crackdown by Beijing on excessive leverage in the sector, have tentatively begun to return, market participants say. The FT (£)