Greenland, Yango get state support as Beijing steps up efforts to appease irate home buyers

China CITIC Financial Asset Management

08/08/2022 02:56

SHANGHAI, Aug 8 (Reuters) - China's Greenland Holdings Corp
said a unit has secured loans from state-owned shareholders and
the parent of Yango Group signed a debt relief agreement with a
state-backed bad loan company, as the government steps up
efforts to aid the country's struggling real estate sector.
    Amid a wave of buyers refusing to make mortgage payments on
delayed housing projects, Beijing last month vowed to increase
support to private developers and ensure buyers can take
delivery of their homes.
    Shares in Yango jumped by their daily limit of 10% in early
Monday trade, while Greenland gained roughly 4%.
    Chinese media also separately reported that Zhengzhou, the
capital city of central Henan province, plans to set up a 10
billion yuan ($1.5 billion) fund to tackle social and financial
problems.
    Greenland  600606.SS  said in a statement on Monday that a
subsidiary plans to borrow a combined 3 billion yuan from two
state-owned shareholders. The two-year loans, with an annual
interest rate of 6%, would help maintain ample liquidity, and
help the company's efforts to sure the smooth handing over of
homes, it said.
    China Huarong Asset Management  2799.HK , a major bad loan
company, said in a statement that it has recently signed a
framework agreement with Yanggo Longking Group to restructure
its debt. Yanggo Longking is the parent of cash-strapped
developer Yango Group  000671.SZ . 
    The move is a concrete step by the Chinese government to
defuse risks in the real estate market and reinvigorate Yango,
Huarong said.
($1 = 6.7607 Chinese yuan)

 (Reporting by Samuel Shen and Brenda Goh; Editing by Edwina
Gibbs)
 ((samuel.shen@thomsonreuters.com;  +86 21 20830018; Reuters
Messaging: samuel.shen.thomsonreuters.com@reuters.net))