Specifically, China Vanke, Seazen Group and Longfor Group Holdings are said to be on the list of companies eligible for additional financial resources. In addition, there are other businesses, including state-owned and private.
Based on this list, financial institutions can consider providing liquidity support through bank loans, debt financing or equity.
The move also represents new efforts by the Chinese government to stem the property crisis that has dragged on for years.
Based on this list, financial institutions can consider providing liquidity support through bank loans, debt financing or equity (Photo: CNBC).
According to experts, the above list will be an expansion compared to the previous list created by banks, which only focused on supporting a number of state-owned enterprises that play an important role in the system.
The move reflects Beijing’s concerns about the property sector, which has been hit by a series of defaults, a pile-up of unfinished apartments and a sharp decline in investment. The housing crisis threatens to derail growth in the world’s second-largest economy .
At a meeting late last week, China’s regulator also asked the country’s largest banks, securities firms and asset managers to meet reasonable capital needs of real estate companies. Financial firms were also asked to treat private and state-owned real estate companies equally.
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