(Bloomberg) — Risky debt from China is back in favor, just so long as it’s not from property developers.

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China Hongqiao Group Ltd., the country’s largest private aluminum producer, priced $330 million of notes at 7.05% on Monday. It was 10 times oversubscribed with more than $3.9 billion of bids and the pricing was 45 basis points tighter than initial guidance, in a sign of strong demand.

The deal underscores one of the most dramatic recent shifts in financial markets globally, after an unprecedented real estate crisis destroyed about $142 billion of market value in dollar junk debt from a peak in 2021.

Now, with record defaults having effectively kicked scores of property notes out of indexes, the market is seeing glimmers of hope in offerings from other sectors like Hongqiao’s. Chinese high-yield dollar bonds have returned about 15% in 2024, the highest annual gain in more than a decade, according to a Bloomberg index.

Fosun International Ltd. is also pricing a tap of its $300 million dollar notes due 2028 on Tuesday, according to a person familiar with the matter. The tap issue would allow Fosun to raise up to $200 million using the terms of the 8.5% bond issued last November. That bond was the company’s first dollar bond sale in three years.

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