(Reuters) – Chinese authorities plan measures, including loans, to increase liquidity at some of the nation’s big property developers, Bloomberg News reported on Wednesday.
Last week, China’s Financial Stability and Development Committee told the banking and securities regulators to help strengthen the balance sheets of some “systematically important” developers, the report said, citing people familiar with the matter.
China’s property market crisis worsened last summer after official data projected home prices, sales and investment all falling.
In recent weeks, China has ramped up support for the industry to relieve a long-running liquidity squeeze that has hit developers and delayed the completion of many housing projects.
Bloomberg reported the firms that would be helped needed to undergo auditing reviews to show they have reliable financial statements and no record of major violations.
The measures could range from equity financing and loans, to allowing the creation of real estate investment trusts and spurring acquisitions, the report said.
China Securities Regulatory Commission did not immediately respond to a Reuters’ request for comment. The Financial Stability and Development Committee could not be reached.
China stocks extended gains on Wednesday, boosted by hopes of a post-COVID recovery, helped by supportive policies for real estate and tech companies.
(Reporting by Sneha Bhowmik in Bengaluru; editing by Barbara Lewis)
