(Bloomberg) -- Sunac China Holdings Ltd.'s shares and bonds surged after the Chinese developer denied submitting a request for policy support from a city government and said business is normal.
The Beijing-based builder said a letter written by a local executive for verbal communication with officials in eastern Shaoxing city last week was only a draft that was “accidentally” sent to a chat group outside the company. It wasn't submitted to the government, Sunac said in a statement. The group's operations are healthy, it added.
Sunac bonds reversed a two-day slump since last Friday, when the letter circulated in the market and sparked concerns about its liquidity. The letter stated that the company sought “special policy support” because operations in the city had become difficult, Bloomberg reported on Friday. The document also said Sunac as a whole had run into “big hurdles” regarding cash flow.
The developer's shares surged as much as 20% in Hong Kong on Tuesday, reversing declines in the previous two days. Its 6.5% note due 2026 climbed 2.7 cents on the dollar to 83.9 cents, according to Bloomberg-compiled prices.
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