China is said to be drafting a detailed 21-point plan to help “high quality developers” with RMB 450bn ($67bn) in financing, including debt extensions, as per news agency Xinhua. The plan is aimed at speeding up the lending of RMB 150bn ($22.4bn) in previously announced loans for home deliveries, an additional RMB 200bn ($29.9bn) in special funds for deliveries of residential properties, and RMB 100bn ($14.9bn) for rental housing loans. Xinhua also noted that regulators will ease the “three red lines” restrictions on select 30 property firms as a pilot project, without revealing names of developers. The new plan is an add-on to existing easing measures the nation has taken to alleviate developers’ financing stresses. Bloomberg had initially reported Zou Lan, director of PBOC’s monetary policy department, indicating that China had drafted this plan to help shore up balance sheets of “high-quality” developers.
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