A major Chinese state-backed property developer, Greenland Holdings, was struggling for funds late last year and subsequently received a previously unreported bailout, reports Reuters.
According to people with direct knowledge of the matter, the Shanghai-based company, in danger of defaulting on a $500 million offshore bond in December, was rescued after Shanghai authorities told local state-owned enterprises (SOEs) to step in and buy new Greenland debt.
Greenland’s financial straits and subsequent bailout, details of which are previously unreported, mark the first known example where Chinese SOEs have been directly ordered to participate in a property sector bond offering—highlighting more active and targeted action being taken by authorities as they seek to limit risks posed by the industry.
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