According to Archyde.comChinese construction companies received 101.8 billion yuan ($14.9 billion) in funding in December, citing data from analyst firm CRIC. This is a third more than in December 2021.
The agency notes that such an active growth in the volume of funds raised is associated with the launch of a state program to support the Chinese real estate sector, which has been experiencing a protracted crisis since the fall of 2021. Then became known about the financial problems of the development holding China Evergrande Group, whose debts exceeded $ 300 billion. Since then, three Chinese developers have already declared default on dollar bonds – Evergrande, Kaisa Group and Sunac China.
Last July reportedthat the Chinese government intends to allocate a total of 1 trillion yuan ($148 billion) to support troubled developers. And on Thursday, January 5, the central bank announced that it could cut mortgage rates for first-time homebuyers in cities where home prices have been falling for three consecutive months.