Chinese Regulator tackles Real Estate Developers amid Crisis
2022.11.21 06:35
Chinese Regulator tackles Real Estate Developers amid Crisis
Budrigannews.com – China should implement plans to improve the balance sheets of “good” developers suffering from a shortage of funds in the market, the head of the market regulator said on Monday.
” – We have to keep an eye on the problems and problems that the real estate market is facing,” Chairman of the regulatory commission of the Central Bank of China Yi Huaiman said at the Beijing financial forum, according to Chinese media “Yicai”.
The comments came as Beijing stepped up measures to support the battered real estate market, which accounts for about a quarter of the country’s economy and the deepened debt crisis is hitting owners of relatively strong balance sheets as well.
The Chinese real estate sector has shrunk sharply in the last year because the government has been trying to limit emergency borrowing. The harsh measure caused a drop in the sale and prices of real estate, a default on real estate and the termination of the construction of real estate.
“Yi spoke about the need for support to implement plans to improve the balance sheets of a high-quality developer, support mergers and acquisitions and the corresponding demand for financing and meet adequate demand for financing from real estate companies through bonds.”
Last month, Chinese regulators cited 16 steps to support the industry, including extending the maturity of loans, as an important step to ease the deep liquidity crisis being dogged by the real estate sector in mid-2020.
Last week, two private developers – Longfor Group Ltd – Mideareal Estate Ltd – received green lights to raise debts totaling 35 billion US dollars and 5 billion US dollars.
