HONG KONG – Cash-strapped developer Country Garden Holdings said on February 3 that more than 30 of its projects had been listed by local Chinese governments as suitable for financial support, as authorities they aim to inject liquidity into the sector affected by the crisis.
China’s largest private property developer said in a statement to Reuters that its projects were included in the so-called “white lists” of Heinan, Hubei, Sichuan and Shandong provinces, as well as the municipality of Chongqing. The developer, which jumped off its offshore debt at the end of 2023, hopes to enter the lists of Guangdong and Hunan provinces, among others.
Country Garden said that the projects, after being added to the white lists, could receive financing support, which, in turn, will help ease the pressure on their liquidity and ensure the completion of the houses.
Sunac China Holdings, which completed a $9 billion (S$12 billion) offshore debt restructuring by 2023, said in a statement to Reuters on Feb 5 that more than 90 of its projects have been added to and whitelist cities including Beijing, Tianjin, Chengdu and Chongqing.
“As the financing comes in place, the cash flow pressure of the development and operation of the Sunac projects will be eased, which will also ensure the work of ‘home delivery’ in different cities,” said the developer.
CIFI Holdings Group, another major developer now working on an offshore debt restructuring, said in a statement on February 4 that 18 of its projects had been whitelisted by local authorities, including in the cities of Chongqing, Beijing, Tianjin and Wuhan. .
China aims to boost financing for residential projects in the coming days as part of its support measures for real estate companies, but the reluctance of banks to lend to the sector will remain a major obstacle for struggling developers who need more fresh funding.
Under the “white list of projects” mechanism, the governments of 35 cities across the country are preparing to recommend to banks residential projects that require financial support. Reuters
great article
Your point of view caught my eye and was very interesting. Thanks. I have a question for you.