Some of the main developers real estate gives China plan to issue short-term asset-backed bonds, yet another sign that regulators are marginally expanding financial channels to the sector amid the debt crisis in the country. Evergrande.
China’s Evergrande, struggling with debts of more than $300 billion, said on Friday that “there was no guarantee” it would have sufficient funds to pay the obligations, prompting the country’s main financial regulators to calm the market.
Regulators said any decline was manageable and developers’ normal financing needs would be met, but the industry faces another year of tight financing conditions and refinancing risks, the industry said. Moody’s in note last week.
Country Garden, the country’s leading real estate developer, said on Sunday that the company is considering issuing supply chain asset-backed (ABS) bonds in the near term.
“As an innovative financing tool, ABS products in the supply chain can support the financing of ‘upstream’ suppliers (who provide inputs for production) and alleviate financing difficulties for small and medium-sized companies. Business“, said the company in a statement in its official account of the WeChat.
Source From: Moneytimes
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