Country Garden is planning to buy residential land in local government auctions for the first time since December 2021, as per WSJ, citing the developer’s executives, in signs of an indication in the property sector. This move comes after Chinese authorities recently dialed back a deleveraging campaign to boost housing demand and supply. In 2021, COGARD bought 57 land plots and it fell to zero last year owing to the meltdown in the sector. COGARD’s dollar bonds were trading stable with its 2030s at over 53 cents on the dollar.
Separately, in yet another effort to ease property market stresses, China is planning to introduce 17 new measures to expand financing for home rentals and fundraising options for related companies. As per the PBOC, this would enhance financial institutions’ capacity for lending to firms that lease residential property. The policy will also allow for these companies to issue bonds to fund construction, purchase and operation of home rentals.
