China will encourage negotiations with quality property developers on debt extension

More from Xinhua on the roll-out of further property sector support measures:

• China will increase financing to quality developers via loans and bond issuance
• China’s plan to improve developers’ balance sheets mainly targets high-quality property firms with relatively big size, and systemic importance
• China will encourage financial institutions to negotiate with quality developers on debt extension on a reasonable basis
• China will support developers’ offshore debt repayment by providing policy support such as better forex management

China will reasonably extend grace period for “collective management system for real estate loans” and improve “Three Red Lines” policy for 30 developers, improving some parameters while maintaining the basic framework unchanged

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Chinese authorities have been adding to measures to prop up the sector. Property is a key driver of economic support, hence the assistance its getting.

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This article was written by Eamonn Sheridan at www.forexlive.com.