By Clarence Leong and Yongchang Chin

Shares of Chinese property developers rebounded Tuesday from a slump to start the week after Fantasia Holdings Group Co. said holders of a yuan-denominated bond due this year agreed to extend the maturity date.

Fantasia rose 8.3% by midday, while peers Sunac China Holdings Ltd., Seazen Group Ltd. and China Aoyuan Group Ltd. advanced 9.0%, 7.1% and 5.3%, respectively.

The Hang Seng Mainland Properties Index added 1.9% to 4219.94, clawing back some of its losses from Monday, though it is still down 30% this year.

Among A shares, developers including China Vanke Co., Poly Developments & Holdings Group Co. and Greenland Holdings Corp. each rose more than 4%.

Shenzhen-based Fantasia, which builds luxury residential projects, said late Monday that the maturity period of its 7.5% bonds with an outstanding principal amount of 949 million yuan ($148.8 million), issued by a subsidiary, was extended to 2023.

"Investors are buying on hopes that Fantasia's agreement can be replicated amongst other stressed developers," Oanda senior analyst Jeffrey Halley said.

Market sentiment on China's property sector has improved amid more easing signals from Chinese authorities this month, with officials pledging to prioritize economic stability next year.

Fantasia and several other smaller developers, including Modern Land (China) Co. and Sinic Holdings Group Co., have defaulted in recent months, as the wider sector has come under strain from declining contracted sales and curbs on borrowing imposed by Beijing.

On Monday, Kaisa Group Holdings Ltd. said it had failed to make several payments on dollar bonds and is talking to creditors about a restructuring plan. Another big offshore borrower in the Chinese real-estate sector, China Evergrande Group, has also entered into talks to restructure its debts after failing to make bond repayments.

Write to Clarence Leong at clarence.leong@wsj.com

(END) Dow Jones Newswires

12-21-21 0111ET