Private Developers Get Green Light to Issue Derivative-Backed Debt

China’s financial regulators have for the first time given the green light for private property firms to issue bonds backed by derivatives, in a move which could help ease the sector’s financing woes by allowing investors to better hedge risks.

It’s the latest effort by authorities to shore up confidence in private developers by easing access to fresh funding, as many have been mired in the industrywide liquidity crunch that reached crisis point last year.