Strong returns spur $10b bonanza in builder bonds

Developers are leading returns in China's bond market in the second half of the year and planning more offerings as Premier Li Keqiang opens financing channels and eases property restrictions to shore up the slumping industry.

Yuan-denominated real estate securities have advanced 4.2 percent since June 30, the most among sectors that have more than one bond in Bank of America Corp's China corporate index. Eleven home builders including China Vanke Co, the nation's biggest, said they aim to raise 61.7 billion yuan ($10 billion) in the interbank market.

Regulators last month said they will allow such offerings for the first time, according to China Investment Securities Co.