BoCom to get a loan for 14 billion
2022.11.23 01:59
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BoCom to get a loan for 14 billion
Budrigannews.com – In the most recent show of support for the troubled property industry, China’s Bank of Communications Co Ltd (BoCom) announced on Wednesday that it would provide developer Vanke with a credit line worth 100 billion yuan (13.98 billion USD).
To alleviate pressure on debt-laden developers and avert a severe housing slump. About a quarter of the economy is made up of the real estate industry.
By sales, Vanke is the second-largest developer in the nation.
According to a statement released by the lender, BoCom will likely offer loans to Vanke for property development, mortgages, and merger and acquisition deals under the terms of the agreement.
It stated that the lender will also provide the developer with funds through bond investment and letters of guarantee.
According to the statement, the agreement is a component of the bank’s efforts to implement 16 measures outlined by Chinese regulators to support the property sector.
It stated that BoCom would “continue to fulfill the responsibility of a state-owned bank” and “exactly promote high-quality economic development with high-quality financial services.”
Midea Real Estate Holding Ltd. will receive a 20 billion yuan line of credit from the bank, according to a separate statement released on Wednesday.
The government’s efforts to limit developers’ excessive borrowing have slowed down China’s property sector, which was once a driving force behind the country’s economic expansion.
The clampdown has led to fewer bond defaults and lower property investment, sales, and prices.Many housing projects have stopped being built, scaring away potential buyers.
According to a deputy central bank official quoted by the state-run Economic Daily on Monday, China’s central bank will provide loans worth 200 billion yuan to six commercial banks for housing completions in the most recent policy move.
($1=7.2465 renminbi)
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