SHANGHAI, (Reuters) – Property developers shares rose Tuesday as a Chinese lender revealed a plan for issuing debt to finance real estate acquisitions – China’s first to do this – and Beijing tried to reassure investors regarding the wider impact of defaults in bond markets.

Shanghai Pudong Development Bank Co said Monday it would raise 5 billion Yuan ($790 Million) via the China interbank market by selling three year bonds. It stated that the funds will be used for financing real estate projects through lending.

The bond sales plan by the Shanghai government-controlled bank pointed to a broadening of financing channels for the property sector and more financial institutions were expected to follow suit, analysts said.

Beijing has already encouraged large property developers in China to buy assets from cash-strapped companies to relieve liquidity pressure. China Merchants Shekou Industrial Zone Holdings Co last week announced that they would be issuing bonds to fund real estate purchases.

China is also making it more convenient for developers of state-backed properties to acquire distressed assets owned by debt-laden companies, according to a source.

Jin Xiandong from China’s National Development and Reform Commission also addressed a conference on Tuesday. Jin said the market was reacting with news about some defaults by highly leveraged real-estate developers and he wasn’t expecting them to impact Chinese bonds overseas more broadly.

On Tuesday, the CSI300 Real Estate Index jumped almost 5% while the Mainland Properties Index grew more than 3%.

The dollar bonds of Chinese developers rebounded after sharp falls during the previous session.

The 2026 A Country Garden Holdings bond rose to 70.866c per dollar from 64.865 overnight, data by Duration Finance shows. This was after the developer bought $10 million in its bonds Monday. Its shares jumped 5.3%.

In a separate case, Minmetals International Trust, a state-owned trust, purchased all equity in the two China Evergrande Group projects. This was a rare situation in which a trust company takes over an asset from a distressed developer.

Minmetals pledged two projects, in Kunming and Foshan in the south, to Evergrande’s trust loan. To acquire the entire equity, Minmetals spent 30 million Yuan (30 million yuan) and 50 million yuan (7.9 million). The latter was 51% of the company’s equity before acquisition.

Minmetals stated in a statement that it was committed to solving the Evergrande problems and “ensure home delivery”, “ensure people’s livelihoods, and provide stability”.

Cash-strapped developers are working harder to avoid defaults and raise funds. Shimao Group saw a 4.4% increase after creditors approved Shimao Group’s Monday extension of the deadline for a 450m yuan asset-backed securities (ABS) payment.

($1 = 6.3429 renminbi)