Reorg’s Ongoing Coverage of the Chinese Real Estate Industry

Since 2019, Reorg’s Asia Core Credit team has been publishing updates on the Chinese real estate industry, as PRC government-driven credit tightening put smaller debt-laden Chinese real estate developers under immense pressure. This has played out over many months and our most recent updates laid out the new measures released by the Beijing municipal govenment for the supervision and administration of the real estate companies’ presale funds. The proposal aims at stregthening the regulation of presale funds, which include homebuyers deposits, down payments, mortgage payments and other payments, ensuring the delivery of projects, protecting home buyers’ rights and promoting the healthy development of the local real estate market.

This week, stock and bond prices of several benchmark Chinese real estate developers were overall up, on a widespread rumour that the People’s Bank of China (PBOC) had discussed at a meeting Nov. 8 on potentially lifting of restrictions on the current “three red lines” policy, said buysiders. Prices were also supported by the news reported by official Securities Times that domestic bond market regulator the National Association of Financial Market Institutional Investors said at a meeting yesterday that it will potentially grant new interbank bond issuance quotas to some property developers. If you’re interested in the stressed / distressed Chinese real estate industry, request a trial to Asia Core Credit.