Bond investors are shrugging off warnings and betting that Bejing’s attempts to cool property prices will not damage Chinese real estate company profits, Bloomberg reported. Despite a statement by esteemed Harvard University professor Kenneth Rogoff that the slowing of price appreciation in Chinese property markets indicates the beginning of a real estate "collapse," yields on China developer’s renminbi-denominated bonds fell to new lows against government debt this year. A credit strategist attributed the improved marketability of Chinese developer bonds to local investors’ confidence in the long-term outlook for housing. Housing prices in 70 Chinese cities rose 11.4% in June year-on-year, according to government statistics, while property sales value rose 25% and project investment rose 38%.
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