Dim sum bonds dominate property market, report says

Dim sum bonds dominated the bond-raising activities in the Chinese property market in May after a mild slowdown in sales and a continuing rise in property prices in April, Moody's Investors Service said on Wednesday.

"About $1 billion in offshore bonds were issued by four rated developers and all of these were yuan-denominated dim sum bonds," said Franco Leung, a Moody's assistant vice-president and analyst.

The issuers were Fantasia Holdings Group Company Limited, Yanlord Land Group Limited, Greentown China Holdings Limited and Powerlong Real Estate Holding.

"The surge in yuan issuances was partly due to strong demand driven by the expectation of a yuan appreciation," said Leung.

Leung was speaking at the release of the latest edition of Moody's Chinese Property Focus newsletter, which also noted a slowdown in sales momentum in April.

Total sales in April declined by 13 percent compared with March figures. However, property prices in China's 70 major cities continued to climb in April.

The number of cities with year-on-year growth in prices increased to 68 in April from 67 in March, the highest level since October 2011.

At the same time, the number of cities with price increases of more than 5 percent year-on-year rose to 24 from 12 in the previous month.