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China debt crunch

China developer Longfor shares rebound after denying default rumor

Beijing-based company says its commercial paper due has been settled without any delay

The Chinese real estate market is in the midst of a debt crisis as major property developers have defaulted on debt payments while the Chinese government has stepped up measures to help stabilize the sector.   © Reuters

SHANGHAI (Reuters) -- Shares of Longfor Group Holdings surged in early trading on Thursday, after the Chinese developer denied rumours that it had missed payment on commercial paper.

Longfor shares rose as much as 11% in Hong Kong on Thursday morning. On Wednesday, the stock slumped 16% in its worst day on record, and hit the lowest in nearly four years on the default rumour.

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