BEIJING, Sept 3 China is relaxing its financing
rules for listed property firms by allowing those that meet a
certain criteria to sell medium-term notes in the interbank
market, three sources with knowledge of the matter said.
Money raised from the sale of notes can be used to fund new
residential housing projects, supplement companies' operating
cash flows and repay bank loans, the sources said. The cash
cannot be spent on buying land, they said.
"Developers that qualify include those that participated in
affordable housing projects and focused on sales of medium- and
small-sized homes," one of the sources said.
"Qualified developers should also focus on sales of
medium-and small-sized homes in their future businesses," the
The regulator of China's interbank market, the National
Association of Financial Market Institutional Investors,
declined to comment.
China's once-heated property market is experiencing its
sharpest slowdown in two years as sales and prices turned south
after an exceptionally buoyant 2013.
The housing slowdown has forced a cash squeeze on some
developers. A Reuters study in June showed cash to
short-term-debt ratios for some 80 listed property companies
were at two-year lows.
(Reporting by Koh Gui Qing; Editing by Simon Cameron-Moore)