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China Expands Financing Tool to Support Ailing Developers

  • Regulator boosts credit support program to 250 billion yuan
  • Move is part of efforts to stabilize economy, regulator says
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China expanded a key financing support program designed for private firms including real estate companies, a move that promises to help developers sell more bonds and ease their liquidity woes.

The National Association of Financial Market Institutional Investors widened the bond financing program to about 250 billion yuan ($34.5 billion) for private companies including developers, the regulator said in a statement, without specifying the previous size of the quota. The ways to support such financing include bond guarantees, credit enhancement and bond purchases, it said, adding that the move is part of efforts to stabilize the economy and could be expanded further if needed.