UPDATE 1-Chinese state firms ask regulators to adjust loan curbs for property deals – Cailianshe

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BEIJING, Nov 10 (Businesshala) – Some Chinese state-owned companies have asked regulators to consider adjusting lending restrictions to property developers for borrowing related to mergers and acquisitions, Chinese media outlet Calianche said on Wednesday. .

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Companies said if they took on new loans in the process of acquisition, they could be violating the so-called three red lines – the financial requirements introduced by the central bank last year that developers must meet to get new bank loans.

Calianche did not provide details on the state-owned firms, citing unnamed sources.

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China’s asset woes have stirred global markets in recent months after debt-ridden developers including Evergrande Group and Peer Casa Group left investors worrying about economic uncertainties.

Some local governments are pushing government-owned firms and state-backed property developers to buy some of Evergrande’s properties to try to control the situation, Businesshala reported, but restrictions on lending allow them to buy more such deals. limiting from.

The central bank said in October that the spillover effect from Evergrande’s debt crisis was controllable, adding that officials would provide financing support to restart projects of troubled developers.

Some banks have recently ramped up disbursement of home loans in some cities, but there is no wave of new loans so far amid a massive regulatory push to delist the sector, Businesshala reported. (Reporting by Beijing Newsroom; Editing by Lewis Havens, Robert Birsel)

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