China property crisis: Beijing drafts 21-point plan to aid developers with financing, debt extensions, state media says
- Top regulators have drafted a 21-task action plan aimed at easing the liquidity crunch for developers Beijing deems to be of ‘good quality’, Xinhua reports
- Xinhua reported that regulators will ease the ‘three red lines’ borrowing restrictions on 30 pilot property firms, without giving specific names
China is drafting a comprehensive action plan to aid embattled developers with 450 billion yuan (US$67 billion) in financing, as well as debt extensions, as Beijing prioritises shoring up the housing market as one of the key pillars of the country’s economic growth, state-run news agency Xinhua reported on Friday.
Top financial regulators have drafted a package of 21 major tasks aimed at alleviating a liquidity crunch for what Beijing deems “good quality developers”, according to Xinhua.
The plan aims to speed up the lending of 150 billion yuan in previously announced loans focusing on home deliveries and to set up an additional 200 billion yuan special fund for deliveries of residential properties. The country will also roll out a 100 billion yuan support plan for rental housing loans.
The package also mentions negotiations between financial institutions and developers over “reasonable debt extension”, Xinhua said.
“The goal is to guide the good quality developers’ balance sheets back to a safe range and move forward the industry into a new business model smoothly,” Xinhua said.
