Chinese state firms ask regulators to adjust loan curbs for property deals - Cailianshe

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A man walks on a scaffolding at the construction site of the Beijing Xishan Palace apartment complex developed by Kaisa Group Holdings Ltd in Beijing, China, November 5, 2021. REUTERS/Thomas Peter

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BEIJING, Nov 10 (Reuters) - Some Chinese state-owned companies have told regulators to consider adjusting lending restrictions to property developers for borrowing related to mergers and acquisitions, Chinese media outlet Cailianshe said on Wednesday.

The companies said that if they took on new debt in the process of acquisitions, they might breach the so-called three red lines - financial requirements introduced by the central bank last year that developers must meet to get new bank loans.

Cailianshe, which cited unidentified sources, did not give details on the state-owned firms.

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China's property woes have rattled global markets in recent months after the debt-laden developers including Evergrande Group (3333.HK) and peer Kaisa Group (1638.HK) suffered a liquidity squeeze, leaving investors worrying about unfolding economic uncertainties. read more

Some local governments have been prodding government-owned firms and state-backed property developers to purchase some of Evergrande's assets to try to control the situation, Reuters reported, but lending curbs have been limiting them from more such deals. read more

The central bank said in October that the spillover effect from Evergrande's debt woes was controllable, adding that authorities would provide financing support for the resumption of troubled developers' projects. read more

Some banks have also sped up the disbursement of home loans in some cities recently, but no wave of new credit is being unleashed just yet amid a heavy regulatory push to deleverage the sector, Reuters reported. read more

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Reporting by Beijing Newsroom; Editing by Louise Heavens, Robert Birsel

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