According to Bloomberg, Country Garden and Sino-Ocean Group have been included by Beijing in a draft list of 50 developers eligible to receive a series of supports finance of the Government .
The move signals that China may have begun to offer some help enterprise the most “indebted” real estate in this country. Management agencies will complete the sending list to banks and some other financial institutions in the next few days.
The fact that struggling names like Country Garden appear on the list shows the views of regulators in China is changing.
Last month Country Garden defaulted on foreign bonds for the first time. The worries of people buy a house is getting bigger and bigger as Country Garden’s ability to complete and hand over projects risks exacerbating this business’s liquidity crisis. p>
However, some investors worry that this list only includes state-owned real estate companies and misses out on difficult businesses that are most in need of support.
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Ms. Ting Meng, credit analyst at ANZ Bank, said that the Chinese Government has drastically changed its attitude towards the real estate sector with more active support measures.
< p>According to experts, for real estate developers who cannot repay their debts, the newly injected cash should be given priority to handing over houses rather than repaying debt.
The real estate crisis production in China has engulfed most of the largest developers. Now many businesses are struggling to repay debt and complete sold projects.
Vanke, one of the remaining businesses, also saw USD bonds plummet after Country Garden defaulted. . Vanke then received unexpected help from local authorities.
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