ICBC Leads State Banks to Offer $129 Billion to China Builders
Comment of the Day

November 24 2022

Commentary by Eoin Treacy

ICBC Leads State Banks to Offer $129 Billion to China Builders

This article from Bloomberg may be of interest to subscribers. Here is a section:

China’s mega banks, led by Industrial & Commercial Bank Ltd., pledged financing support of at least 925 billion yuan ($129 billion) to property developers as part of a push to ease turmoil in the nation’s real estate market. 

ICBC, the world’s largest bank by assets, on Thursday said it would provide 655 billion yuan in credit lines to 12 developers, including Country Garden Holdings Co. That came after Bank of China Ltd.Bank of Communications Co., Postal Savings Bank of China Ltd. and Agricultural Bank of China Ltd. also disclosed they would also extend credit lines. 

 

Eoin Treacy's view

The fix is in. With almost $1 trillion in additional credit provided to the struggling property developers sector, no further bankruptcies are likely. With COVID cases at a record high, this action suggests the government’s efforts to squeeze leverage out of the property sector have run their course.

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