The state-owned China Bond Insurance Company is expanding support to a dozen private developers by guaranteeing bonds worth RMB 20 billion ($2.7 billion), reports the South China Morning Post. The company, together with the central bank-backed National Association of Financial Market Institutional Investors (NAFMII) and the China Real Estate Association, met 21 private property companies on Tuesday, state-run media Securities Daily reported.
Sources familiar with the matter confirmed that the meeting took place, but added that the details of the bond to be guaranteed were not yet available.
News of the meeting comes days after several major developers reported facing debt issues, which added to concerns among investors and rating agencies about these companies’ future operations.
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