Chinese regulator plans to improve balance sheets of ‘good quality’ property developers

Chinese regulator plans to improve balance sheets of ‘good quality’ property developers

2022/11/21 at 4:12 am
2022/11/21 at 4:12 am

HONG KONG, Nov 21 – China needs to put in place plans to improve the balance sheets of “good quality” property developers hit by cash shortages in the sector, the head of the country’s securities regulator said on Monday.

“(We) have to pay close attention to the difficulties and challenges facing the real estate industry,” Yi Huiman, chairman of the China Securities Regulatory Commission (CSRC), said during a financial forum in Beijing, the newspaper reported. half Chinese Yicai.

The comments come at a time when Beijing is stepping up measures to support the country’s beleaguered real estate sector, which accounts for about a quarter of the economy, and a mounting debt crisis also hitting developers with relatively thin balance sheets. more solid.

The Chinese real estate sector has slowed down a lot in the past year, as the government has tried to curb excessive borrowing. The drastic measures caused the fall in sales and prices of real estate, the default of bonds and the suspension of construction.

Yi said support was needed to carry out good-quality developer balance sheet improvement plans, facilitate M&A operations and related financing demand, and meet reasonable financing demand from real estate companies. through bonuses.

Earlier this month, Chinese regulators outlined 16 support measures for the sector, including loan repayment extensions, in a major push to ease the deep liquidity crisis 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.

Melissa Galbraith
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