China’s debt-laden Country Garden Holdings has been included on a government draft list of 50 developers eligible for a range of financing support, Bloomberg reported on Wednesday, citing people familiar with the matter.
Some other distressed developers, like Sino-Ocean Group and CIFI Holdings have also been included on the list, Bloomberg added.
Mounting problems in the cash-squeezed and highly indebted property sector, which accounts for one-quarter of China’s economic activity, have sparked fears of a broader financial crisis and are sharply weighing on economic growth and consumer confidence.
Authorities are keen that any risks posed by Country Garden’s liquidity problems should not spill over to the wider economy, three sources told Reuters earlier this month as talk swirled of various rescue plans.
Country Garden declined to comment. Sino-Ocean and CIFI didn’t immediately reply to Reuters’ queries on Wednesday.
Regulators are set to finalize the list and distribute it to banks and other financial institutions within days, Bloomberg said, citing unnamed sources.
Country Garden was once China’s biggest private property developers. It missed a coupon payment in October triggering default terms.
It is unclear what specific measures will be taken to support the developers on the draft list.
Reuters