Financial Times
China’s state-owned banks have launched a concerted effort to strengthen the finances of the country’s struggling property developers, with more than Rmb220bn ($30.7bn) being announced on Wednesday in new credit lines. Bank of Communications, China’s sixth-largest bank by assets, was the first to announce support, agreeing a Rmb100bn credit line for Chinese developer Vanke and Rmb20bn for Midea Real Estate, in a clear sign of greater government support for stronger players in the real estate sector. Bank of China, the fourth-biggest bank in China, later announced it would offer another Rmb100bn credit line to Vanke, while the Agricultural Bank of China, the country’s third-largest lender, said it would also offer credit lines to five developers — Vanke, China Overseas Land and Investment, China Resources Land, Longfor and Gemdale — but did not reveal any figures.
