Chinese property developers to sell domestic bonds to raise cash

Three Chinese property developers, including Country Garden Holdings and Longfor Group, intend to sell bonds in China to collect a combined RMB 18 billion ($2.83), reports Reuters. The plans were found on the official registration system of China’s interbank debt market and show a marginal easing by Beijing of liquidity stresses on the struggling sector.

China tightened financing curbs on the real estate industry early this year, exacerbating financial problems at indebted developer China Evergrande Group and triggering sector-wide liquidity issues that some feared could destabilize China’s economy.

In recent weeks there have been signs that some financing channels are being marginally relaxed for developers. According to the filing system of China’s interbank debt market, Country Garden Real Estate Group, controlled by Country Garden Holdings, plans to issue medium-term notes worth RMB 5 billion.