HONG KONG—Even a government bond guarantee wasn’t enough to prevent a crisis of confidence at one of China’s property developers, which struggled this week to convince investors that it can repay its debt.
Earlier this month, CIFI Holdings (Group) Co. one of the country’s top 20 developers by contracted sales, issued the equivalent of $167 million in new yuan-denominated bonds that were insured against default by a government-backed entity. It was part of a select group of six real-estate companies to take part in a pilot program designed to help private-sector developers raise money and give investors assurance that they would get their money back.
