China Expands Debt Guarantee Program for Property Developers

State-owned China Bond Insurance Co. is expanding a debt guarantee program to help about a dozen property developers issue 20 billion yuan ($2.75 billion) of bonds to shore up an industry that’s mired in a liquidity crisis amid slumping housing sales.

Together with the National Association of Financial Market Institutional Investors (NAFMII) and the China Real Estate Association, China Bond Insurance summoned 21 private developers to a symposium Tuesday to update progress on previous guarantees for developers’ bond issuance and to listen to feedback. NAFMII is the self-regulatory body of the interbank market backed by the central bank.