Second ReutersChinese construction companies received 101.8 billion yuan ($14.9 billion) in financing in December, citing data from analyst firm CRIC. This is a third more than in December 2021.
The agency notes that such an active growth in the volume of raised funds is associated with the launch of a state program to support China’s real estate sector, which has been experiencing a protracted crisis since the fall of 2021. So become known on the financial problems of the development holding China Evergrande Group, whose debts exceeded 300 billion dollars Since then, three Chinese developers have already declared default on dollar bonds: Evergrande, Kaisa Group and Sunac China.
Last July reportedthat the Chinese government intends to allocate a total of 1 trillion yuan ($148 billion) to support struggling developers. And on Thursday, Jan. 5, the central bank announced it could cut mortgage rates for first-time homebuyers in cities where home prices have been falling for three consecutive months.