China bad-debt managers move to support stressed developers


Seeking aid: People walk past the logo of Shimao Group in Shanghai. The embattled developer is said to be in talks with financial institution Huarong. — Reuters

CHINA’S biggest bad-debt managers are moving to support cash-strapped real estate developers at the urging of policy makers in Beijing, according to people familiar with the matter, adding to official efforts to contain the fallout from a string of defaults.

Regulators have told state-owned firms including China Huarong Asset Management Co and China Cinda Asset Management Co to participate in the restructuring of weak developers, acquire stalled property projects and buy soured loans, the people say, asking not to be identified discussing private information.

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