Tue 01/10/2023 22:15 PM
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Chinese regulators have determined a preliminary list of high quality real estate developers for the implementation of what they called “balance sheet improvement plan,” which includes such private companies as Longfor Group, Gemdale Group, Country Garden, Seazen Group, Midea Real Estate, Sino-Ocean Group and Hangzhou Binjiang Real Estate Group, according to two sources familiar with the matter.

The list also includes certain state-owned developers. The “balance sheet improvement plan” entails more policy support for equity financing, among other measures, the sources added.

The plan was released following a symposium Tuesday, Jan. 10, that the People’s Bank of China and the China Banking and Insurance Regulatory Commission held with major banks, during which the regulators instructed the banks to help high quality top-tier developers that are systemically significant to resolve risk and implement the “balance sheet improvement plan,” according to onshore media reports.

As a follow-up to previously announced policy initiatives such as the 16 measures, the symposium announced new measures including “asset activation,” “debt continuation,” “equity supplement” and “expectation enhancement” to help improve the operating and financing cash flow and the balance sheets of high quality developers. Implementation details of the new measures were not immediately available.
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