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.
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.Click HERE to subscribe to Fuller Treacy Money Back to top