Chinese real estate companies are basically unwelcome to raise funds abroad, so they can only focus back on the domestic market. However, in addition to banks and state-owned AMCs that need help, private institutions will conduct more stringent investigations and screenings on the solvency of enterprises.
According to Crane’s statistics, in the first three quarters of this year, private real estate companies have to pay off more than 400 billion in debt. In the face of a possible thunderstorm, not only enterprises are under great pressure, but local governments are also under great pressure. After all, although I don’t want to admit it, the fact remains that the real estate issue must have a soft landing, otherwise everyone will have to experience the pain of the next-door neighbor Japan in the past ten years in the future.
How to clear mines has become the focus of the work of the government and enterprises this year. As for the form, in addition to giving the green light as much as possible for consumers to buy houses, it is basically operations such as loan repayment, project acquisition, and debt-to-equity swap. In terms of division of labor, the rescue of large enterprises is mainly led by the four major asset management companies. And for some small and medium-sized projects, local AMC will play a major role.
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