One of China’s many struggling property developers, Kaisa Group, has reached a strategic co-operation agreement with China Great Wall Asset Management and China Merchants Shekou Industrial Zone Holdings, both state-owned, on arrangements for joint ventures and asset acquisitions, reports Reuters.
Analysts said Kaisa’s move could set an example for other distressed property developers, including China Evergrande Group and Shimao Group, to introduce state-owned enterprises or local governments for their restructuring.
Chinese state-owned firms are expected to acquire more assets from highly indebted private developers as Beijing steps up efforts to stabilize and tighten control over the crisis-hit property sector, which accounts for a quarter of the economy.
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