Caixin
May 18, 2022 09:36 PM
BUSINESS

Private Developers Get Green Light to Issue Derivative-Backed Debt

Financial regulators have allowed private property firms Country Garden, Longfor and Midea Real Estate to issue bonds backed by credit derivative contracts. Photo: VCG
Financial regulators have allowed private property firms Country Garden, Longfor and Midea Real Estate to issue bonds backed by credit derivative contracts. Photo: VCG

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.

You've accessed an article available only to subscribers
VIEW OPTIONS
Share this article
Open WeChat and scan the QR code
NEWSLETTERS
Get our CX Daily, weekly Must-Read and China Green Bulletin newsletters delivered free to your inbox, bringing you China's top headlines.

We ‘ve added you to our subscriber list.

Manage subscription
PODCAST
China Stories: Illuminating the Silver Screen for the Visually Impaired
00:00
00:00/00:00