Chinese regulators and its biggest bad-debt asset management companies are said to be planning to offer ~RMB 160bn ($24bn) of refinancing support to high-quality developers in 1Q 2023, as per sources. While not many details were revealed, sources said that the PBOC will at first, channel RMB 80bn ($11.8bn) of loans through China Huarong and its large peers, offering an annual interest rate of 1.75%. As per SCMP, the four big bad debt asset managers – China Huarong, China Cinda, China Great Wall Asset Management, and China Orient have lent money to most the country’s top 50 developers over the years. They note that as of end-June 2022, China Cinda and China Huarong alone had over RMB 200bn ($29.5bn) in exposure to the sector which accounted for ~50% of their acquisition and restructuring businesses. The above update is yet another addition to the slew of measures that Beijing has taken to help ease financial stresses in the property sector.
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