Chinese Developers Struggle to Avoid Defaults Despite State Help
- Builders continue to use grace periods before making payments
- Liquidity for most still tight as home presales weak: Nomura
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China’s sweeping policy support for the property sector has been no quick fix for developers’ liquidity struggles, leaving some investors waiting until the last minute for cash.
Central China Real Estate Ltd. remitted funds this week for a dollar-bond interest payment that was originally due Jan. 14, three people familiar with the matter said. The amount due was $9.75 million and there was a 30-day grace period to pay, according to data compiled by Bloomberg. Central China’s investor relations department didn’t offer comment when reached by phone and email regarding the payment status.