HomeBusinessChina encourages bad loan companies to aid struggling developers -China Sec Journal

China encourages bad loan companies to aid struggling developers -China Sec Journal

SHANGHAI : China’s monetary regulators have met with the nation’s main bad loan companies to examine how such asset administration companies (AMCs) can take part in developers’ asset disposals, the China Securities Journal reported on Thursday.

China is encouraging state companies to purchase initiatives from cash-strapped developers to assist ease extreme liquidity stress on the sector that would threaten monetary and social stability.

Bad loans companies have wealthy expertise in disposing of soured property, in addition to venture mergers and acquisitions, and their participation might help dissolve dangers in China’s struggling property sector, the state-owned newspaper stated.

The article didn’t identify the regulators or the companies that had been summoned by them.

China has 4 huge AMCs – Cinda, Huarong, China Orient and Great Wall – that had been initially arrange to eliminate non-performing loans from main state banks.

On Wednesday, China Evergrande Group stated it goals to have a preliminary restructuring proposal in place inside six months because the debt-laden developer scrambles to reassure collectors spooked by defaults since its funds started to unravel final 12 months.

(Reporting by Samuel Shen and Brenda Goh; Editing by Lincoln Feast.)



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