Chinese authorities are planning to usher in further support measures to ease liquidity stress at some of the nation’s too-big-to-fail developers as the property downturn persists, according to people familiar with the matter.
The Financial Stability and Development Committee told the banking and securities regulators late last week to help shore up the balance sheets of some “systemically important” developers, said the people, asking not to be identified discussing a private matter. In order to be eligible, firms need to receive “unqualified” auditing reviews to show they have reliable financial statements and have no record of major violations including defaulting on publicly-issued debt, said the people.
