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China Lets Banks Ease Financing to Distressed Developers

  • Central bank met with banks, bad-debt managers last week
  • Discussion includes resolving risks of 12 distressed builders
The PBOC held a meeting with major banks and asset-management firms last week.

The PBOC held a meeting with major banks and asset-management firms last week.

Photographer: Yan Cong/Bloomberg
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China’s central bank stepped up its support for several distressed developers by allowing banks and bad-debt managers to loosen restrictions on some loans to ease a cash crunch, according to people familiar with the matter.

The People’s Bank of China held a meeting with about 20 major banks and asset-management firms last week to help resolve crises at a dozen large real estate firms including China Evergrande Group, the people said, asking not to be identified discussing private matters. The central bank sought looser requirements on a range of financing, from lending for property acquisitions to extending maturities on debt, the people added.