China-based hedge funds Shanghai Bull Asset Management and Shanghai Silver Leaf Investment Co have both booked big returns by exiting lucrative trades on the country's property bonds, according to a report by Bloomberg.

China-based hedge funds Shanghai Bull Asset Management (Bull Asset) and Shanghai Silver Leaf Investment Co (Silver Leaf) have both booked big returns by exiting a lucrative trade son the country's property bonds, according to a report by Bloomberg.

Both firms have decided to unwind their wagers on concerns over the sector's debt burden.

Bull Asset has reportedly sold all its CIFI Holdings Group Co bonds after cut-price purchases of the troubled assets helped spur a 523% increase in its distressed-debt strategy in 2022. 

Silver Leaf meanwhile, which booked a 136% gain last year using interest-rate swaps, has dumped almost all of the homebuilder bond portfolio it acquired late last year in a high-yield strategy after policy easing boosted prices.