Chinese regulator plans to improve balance sheets of ‘good quality’ developers
“(We) should pay close attention to the difficulties and challenges facing the real estate industry,” Yi Huiman, chairman of the China Securities Regulatory Commission (CSRC) said at a financial forum in Beijing, the outlet reported. Chinese Yicai.
The comments come as Beijing steps up its support measures for the country’s ailing real estate sector, which accounts for about a quarter of the economy, with the worsening debt crisis also hitting developers with relatively stronger balance sheets.
China’s real estate sector has slowed sharply over the past year as the government seeks to limit excessive borrowing. The crackdown has triggered a slump in house sales and prices, bond defaults and the suspension of construction.
Yi said support is needed to implement plans to improve the balance sheets of good quality promoters, facilitate M&A transactions and related financing demand, and meet reasonable financing demand. real estate companies through bonds.
Earlier this month, Chinese regulators outlined 16 measures to support the industry, including loan repayment extensions, in a major effort to ease the deep liquidity crunch that has plagued the real estate sector since mid- 2020.
Last week, two private developers Longfor Group Holdings Ltd and Midea Real Estate Holding Ltd were given the green light to raise a total of 35 billion yuan ($5 billion) in debt.
(Reporting by Xie Yu, editing by Louise Heavens)
By Xie Yu