Builders turn to overseas bond investors

Domestic funding sources are shrinking for the nation's property industry, which is going through a period of transformation, and developers may need to look at offshore markets to raise cash, said analysts.

And there's rising demand for developers' debt overseas, because it offers high yields and low default rates, the analysts said.

In the Asian market, high-yield bonds issued by Chinese enterprises get relatively high ratings, Laura Acres of Moody's Investors Service told a high-yield bond forum in Shanghai in late April.