Bull and bear for Chinese property bonds in 2015

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By Narae Kim
17 Dec 2014

Chinese property was firmly back on the menu at the end of the year, with issuers making the most of the bullish sentiment following a rate cut by the People’s Bank of China (PBoC). But while falling rates will benefit the sector’s biggest names, smaller borrowers could find conditions tougher in 2015.

On November 21 the PBoC lowered its benchmark one year lending rate by 40bp to 5.6% and cut the one year deposit rate by 25bp to 2.75%. The move was viewed as positive for property developers as it is likely to support sales and reduce developers’ borrowing costs. ...

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