Huarong Suspends New Loans to Developer Sunac
- Huarong units with relationships to Sunac need to monitor risk
- Sunac is China’s most indebted developer after buying spree
The Sunac China Holdings Ltd. logo is displayed on a crane at one of the company's construction sites in Beijing, China, on Tuesday, March 10, 2015. China set the lowest economic growth target in more than 15 years and flagged increasing headwinds that include a property slump, excess industrial capacity and disinflation.
Photographer: Tomohiro Ohsumi/BloombergChina’s most indebted developer is the latest firm to feel the heat amid a drive by regulators to rein in risks in the financial system.
China Huarong Asset Management Co., a state-owned entity whose businesses include lending, asked units to temporarily suspend new project financing to Sunac China Holdings Ltd., according to an internal email seen by Bloomberg. While Huarong says it’s not acting on instructions from regulators, the email noted authorities are paying more attention to Sunac’s high debt load and aggressive acquisition strategy.