China encourages bad loan companies to aid struggling developers -China Sec Journal

China Securities Co

27/01/2022 24:01

SHANGHAI, Jan 27 (Reuters) - China's financial regulators
have met with the country's major bad loan companies to study
how such asset management companies (AMCs) can participate in
developers' asset disposals, the China Securities Journal
reported on Thursday.
    China is encouraging state companies to acquire projects
from cash-strapped developers to help ease severe liquidity
stress on the sector that could threaten financial and social
stability.
    Bad loans companies have rich experience in disposing of
soured assets, as well as project mergers and acquisitions, and
their participation can help dissolve risks in China's
struggling property sector, the state-owned newspaper said. 
    The article did not name the regulators or the companies
that were summoned by them. 
    China has four big AMCs - Cinda, Huarong, China Orient and
Great Wall - that were originally set up to dispose of
non-performing loans from major state banks.
    On Wednesday, China Evergrande Group  3333.HK  said it aims
to have a preliminary restructuring proposal in place within six
months as the debt-laden developer scrambles to reassure
creditors spooked by defaults since its finances began to
unravel last year.  urn:newsml:reuters.com:*:nL1N2U6059

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