SHANGHAI (Reuters) – China’s self-regulatory body that oversees the interbank market will support debt issuance by qualified developers to finance acquisitions of real estate projects and financing. for the completion of unfinished buildings, the Securities Times reported on Friday.
The National Association of Financial Market Institutional Investors (NAFMII) held a meeting with Chinese developers on Friday, where they said individual risk circumstances would not affect to the usual financial functions of the market in the medium and long term, according to the paper.
It is the latest sign that China is easing financial conditions for developers to prevent the financial troubles of heavily indebted China Evergrande Group, which has led to the collapse of the real estate sector. real estate, as well as the sharp downturn of the economy.
However, NAFMII will give priority to supporting developers who operate in line with China’s real estate policies, the paper said, suggesting Beijing will not reverse its debt forgiveness campaign.
Developers including China Merchants Shekou Industrial Zone Holdings Co plan to issue debt instruments through the interbank market in the near future to finance mergers and acquisitions, the newspaper said.
(Reporting by Samuel Shen and Andrew Galbraith; editing by Richard Pullin)
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