China’s securities watchdog plans to hold a meeting on the real estate market on Friday, according to people familiar with the matter, underscoring growing urgency among regulators to deal with a worsening property crisis.
(Bloomberg) — China’s securities watchdog plans to hold a meeting on the real estate market on Friday, according to people familiar with the matter, underscoring growing urgency among regulators to deal with a worsening property crisis.
The China Securities Regulatory Commission plans to convene with some property developers and financial institutions virtually on Friday morning, said the people, who asked not to be identified because the matter is private. The gathering through video conferencing is being organized by the CSRC’s corporate bonds division, one of the people said.
Country Garden Holdings Co. was not among those invited, one of the people said. The developer — once the nation’s largest by sales — has become the latest focus of China’s property woes after bondholders said they had yet to receive overdue interest payments, raising concerns that it may be the next giant to default.
The CSRC didn’t reply to a request for comment. Representatives for Country Garden weren’t able to comment.
The meeting would be the latest in a series of attempts by regulators across China’s government to revive the property market, which is dragging on the economy’s recovery. Slumping home sales are hurting builders including Country Garden that need cash to alleviate the multiyear credit crisis.
Last week, the central bank vowed to increase funding support for the private sector, after meeting with executives from eight firms including three developers. Country Garden wasn’t among those, either.
That came after the Communist Party’s Politburo — its top decision-making body — in July signaled a shift toward looser policies for the sector.
–With assistance from Zhang Dingmin.
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