China Ping An Bank lists41 Developers to rescue the nation's property sector
Major China Ping An Bank Co. has put 41 firms on a list of developers eligible for its funding support، according to people familiar with the matter، the latest move in a widening rescue campaign for China’s property sector as the government is working on a new basket of measures to support the real estate market after existing policies failed to sustain a rebound in the ailing building sector، while many residential buildings are still under construction in provinces.
Ping An Bank Co. to adjust criteria related to extending credit lines
The Chinese lender Ping An Bank Co. has decided to adjust criteria related to extending credit lines in order to meet builders’ reasonable funding demand، a task set out in a major annual government economic conference in China last month، as the changes involve areas within the developers including risk assessment and approval procedures.
The Chinese lender Ping An Bank Co.، which distributed the list to its departments and branches earlier this month، stated that more than half of the builders and developers on the list are state-backed companies including Poly Property Group Co. and Beijing Urban Construction Group Co.، and the rest cover private-sector peers such as Longfor Group Holdings Ltd.، China Vanke Co. and Gemdale Corp.
Beijing stepped up efforts to ease a cash crunch among builders، developers
The list of the Chinese lender Ping An Bank Co. offers a fresh example of how financial firms in China are responding after Beijing stepped up efforts to ease a cash crunch among builders، as an unprecedented housing slump worsens and it also coincided with a move by the authorities to call on local governments to better support developers’ financing needs، including drafting a list of projects eligible for funding.
Ping An Insurance (Group) Co.، the Chinese lender parent of Ping An Bank، had previously said it’s trying to reduce exposure to the Property sector in China، and regulators have been encouraging insurers to focus on the developers core business s the latest list marks a shift in strategy and may see other banks follow suit.
Extending full lending support to developers on the list
The Chinese lender Ping An Bank Co.، told its departments and branches that they should extend full lending support to developers on the list operating normally، and refrain from cutting or suspending credit lines، and also urged them to use maturity extensions and rescheduling payment arrangements to alleviate builders’ liquidity pressure.
Major China Ping An Bank Co. believes that China ’s economy appears to have bottomed out، but the recovery ahead is set to be slow and bumpy as data showed the economy expanded 5.2% for the entirety of last year، hitting its growth goal but there’s been more mixed news recently، with consumer prices falling again، while exports showing signs of stabilization.
Ping An Bank is ranked as the country’s 13th-biggest bank by assets in China
Major China Ping An Bank، which is ranked as the country’s 13th-biggest bank by assets last year، according to local media citing a league table from the China Banking Association، includes also in its list local builders and developers such as Hangzhou Binjiang Real Estate Group Co. and Greentown China Holdings Ltd.، as well as Hong Kong developers such as New World Development Co. and Sun Hung Kai Properties Ltd.
China’s Ping An Bank list of 41 developers in funding support declined to comment such as Greentown while Vanke، Longfor، Gemdale، Poly Property، Hangzhou Binjiang، New World Development and Sun Hung Kai didn’t immediately reply to request for comment، although the list offers a fresh example of how financial firms are responding after Beijing stepped up efforts to ease a cash crunch among builders and developers، as an unprecedented housing slump worsens.
