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China is setting up an asset management company to help mainland developers secure financing, Xinhua said.
The move is part of 21-task plan to guide the balance sheets of “quality developers” back to health.
China has been solving debt problems through these means for decades and before the listing of the state-owned banks, asset management firms like Cinda and Huarong were set up to help handle their bad loans paving the way for their listings, and then these asset management companies were also listed later.
Xinhua also reported that China will soon adjust borrowing curbs to improve finances of property developers considered to be of “good quality.”
Developers have been subject to the so-called “Three Red Lines” borrowing curbs since late 2020.
It said the plan targets mainly relatively large property firms that are systemically crucial, adding that financial institutions will be allowed to exercise own discretion.
The state media denied the existence of a “white list” as reported by some media reports that claimed seven privately-owned developers were already added to a “white list” to receive support.
In a separate development, China Aoyuan (3883) sold a 60 percent stake in a redevelopment in Zhuhai city to state-owned coal-mining firm Shandong Energy, according to mainland media outlet Cailianshe.
The developer owns the remaining 40 percent stake in the project estimated at more than 22 billion yuan (HK$25.67 billion).
Reuters and staff reporter
