By looking at last week’s market action you might think that the Evergrande developer crisis is over. Developer spreads ripped in and equities soared:

Goldman’s policy monitor has eased but it is marginal:

The truth of it is more complex:

Some Chinese property developers recently announced plans to issue debts, fuelling market expectations for easing financing amid a sector-wide cash crunch.

China Merchants Shekou Industrial Zone Holdings Co., Ltd, an industrial property developer, plans to issue 3 billion yuan of medium-term notes in the interbank market, including 1.5 billion yuan of 3-year notes and 1.5 billion yuan of 5-year notes and the proceeds will all be used to repay maturing bank loans, according to information disclosed on the website of the Beijing Financial Assets Exchange on Friday.

Last time the company issued medium-term notes was December 1 last year, when the company issued 1.6 billion yuan of notes, according to information from the National Association of Financial Market Institutional Investors (NAFMII), an interbank bond regulator.

Also on Friday, Bright Real Estate Group Co.,Ltd, announced that it will issue up to 580 million yuan of 3-year notes in the interbank market on November 16 – 17, the proceeds of which will all be used to repay maturing debt, according to information from the Beijing Financial Assets Exchange.

One day earlier, Poly Developments and Holdings Group said it will issue 2 billion yuan of medium-term notes in…

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