Xi Tolerance for Property Pain Nears Limit as Rescue Emerges
- Helping developers could revive confidence and sales
- Plan hinges on banks, and more funding may be needed
Chinese property developers used to rely on selling houses in advance of construction to fund their development, with loans and bond issuance secondary. But that pre-sales funding has dried up for many developers, increasing the need for bank support.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China is ramping up pressure on banks to support struggling real estate developers, signaling President Xi Jinping’s tolerance for property sector pain is nearing its limit.
Developer stocks and bonds rallied in China this week on bets that authorities may introduce some of the most sweeping measures yet, creating a draft list of firms eligible for bank support while weighing a plan that would allow banks to offer them unsecured loans for the first time.