Offshore debt sales spurs confidence that the borrowers have the resources to weather a slowing economy, make clear by the fact that bonds issued by China developers are rebounding from their worst first half in two years as a record $6.8 billion, according to Bloomberg.

It is worth noting that of eight dollar bonds sold between January and June, only one has recovered 75 per cent of its losses according to prices from BNP Paribas SA, ING Groep NV, Nomura Holdings Inc. and Royal Bank of Scotland Group Plc. Country Garden Holdings Co.'s 11.25 percent notes due 2017 trade at 102.5 cents on the dollar, up from 87 cents in May. New World Development Ltd.'s 7 percent bonds due 2020 fetch 104.95 cents, compared with a low of 97.15 cents in June.

At the same time, profits for Chinese developers are rising. Slowing house-price growth eases concern regulators will enact more measures to cool the market. Agile Property Holdings Ltd., which builds condominiums in 22 cities and regions, reported an almost five-fold increase in first half profit on Aug. 20. Agile's 8.875 percent bonds due 2017 traded at 101.5 cents today, after plunging to 86 cents on May 25 as government initiatives to slow property inflation took effect. The measures included a ban on loans for third-home purchases and higher mortgage rates.

China Investment BNP Paribas