China puts Country Garden on draft list of builders to support- Bloomberg News (updated)

CIFI Holdings (Group)

22/11/2023 09:16

(Updates key words for media subscribers, previous
COUNTRY-GARDEN/FUNDING)
       Nov 22 (Reuters) - 
    China's debt-laden Country Garden Holdings Co  2007.HK  has
been included on a government draft list of 50 developers
eligible for a range of financing support, Bloomberg reported on
Wednesday, citing  people familiar with the matter. 
    Some other distressed developers, like Sino-Ocean Group and
CIFI Holdings  0884.HK  have also been included on the list,
Bloomberg added.
    Mounting problems in the cash-squeezed and highly indebted
property sector, which accounts for one-quarter of China's
economic activity, have sparked fears of a broader financial
crisis and are sharply weighing on economic growth and consumer
confidence.
        Authorities are keen that any risks posed by Country
Garden's liquidity problems should not spill over to the wider
economy, three sources told Reuters earlier this month as talk
swirled of various 
    rescue plans
    .
  
    Country Garden declined to comment. Sino-Ocean and CIFI
didn't immediately reply to Reuters' queries on Wednesday.
        Regulators are set to finalize the list and distribute
it to banks and other financial institutions within days,
Bloomberg said, citing unnamed sources.
  
        Country Garden was once China's biggest private property
developers. It missed a coupon payment in October triggering
default terms.
  
        It is unclear what specific measures will be taken to
support the developers on the draft list.
  

        
  

 (Reporting by Devika Nair in Bengaluru; Editing by Savio
D'Souza and Kim Coghill)
 ((Devika.MadhusudhananNair@thomsonreuters.com;))