Thank you for your interest in this exclusive news about the Chinese real estate sector recovering from the debt crisis
China’s central bank deputy governor said Friday that the huge real estate sector is recovering from a slump caused by tightening debt controls, after a wave of developer defaults rocked global financial markets.
Pan Gongsheng mentioned Evergrande Group, the world’s largest indebted real estate developer, but did not provide an update on its government-supervised efforts to restructure 2.1 trillion yuan ($305 billion) of debt to banks and bondholders.
“Market confidence is recovering. Transactional activity in the real estate market increased. The financing environment, especially for high-quality companies, has improved significantly.”
Ban gave no indication that Beijing plans to make major changes to its debt controls, known as the “three red lines”.
China’s economic growth slowed in mid-2021 after regulators concerned about dangerously high debt levels stopped Evergrande and heavily indebted developers from borrowing more money. That added to the disruptions caused by anti-virus restrictions.
Some developers have collapsed and others have defaulted on billions of dollars in debt to Chinese and foreign bond investors. Evergrande said it had 2.3 trillion yuan ($330 billion) in assets but was struggling to convert that into cash to pay off lenders.
Local governments have taken over some unfinished projects to make sure families get apartments that have already been paid for.
Disclaimer: This news was written by Al-Masry Al-Youm website, and it does not express the country’s point of view. Rather, it was transmitted with its content as it is.
