Several of China’s biggest banks have been considering tighter lending standards to real estate projects by local government financing vehicles (LGFV) as per a Bloomberg report on Friday. This comes concerns have emerged about some LGFVs taking on too much risk. Dollar bonds of Chinese property developers which have already been reeling under pressure continue to fall, with the above news offering no solace for those companies that could have sought LGFV funding. Dollar bonds of Logan and Country Garden topped the losers list on Friday, falling 8-12%.
Banks to Reduce Chinese Real Estate LGFV Lending
