China’s Securities Regulatory Commission has rejected mandatory convertible bond registration applications from multiple property developers, including Country Garden and Sino-Ocean, according to people familiar with the matter. Country Garden had issued part of a planned $13 billion offshore MCB program but was later told its registration was not accepted because it qualified as a "credit-defaulter entity." Sino-Ocean had also considered MCBs in bilateral restructuring talks with private creditors. Offshore MCBs can reduce repayment burdens by converting debt into equity, but the reported decisions could limit a central restructuring tool for a sector with about $130 billion in defaults. Chinese property stocks fell, with a Bloomberg index down as much as 2.6% and Country Garden shares down as much as 6%. The move comes despite recent government measures supporting property-sector equity and bond financing. On the same day, China’s Supreme People’s Court issued its first systematic bankruptcy guidelines for property developers, prioritizing viable restructurings, faster liquidation of nonviable companies, creditor protection and the resumption of stalled projects. Major developer restructurings remain in progress, while weak home prices and broader economic weakness continue to pressure the sector.