Evidence is gathering to show that the Chinese government is urging state-owned real estate developers to gain market share from competing companies that are struggling to raise money to contain the real estate crisis.
Officials in Guangdong Province, China, have set up a forum for discussions between financially-stricken real estate developers and state-owned enterprises to support the acquisition and integration of some projects. The country’s news media, Fortune, reported. In response to this, real estate stocks initially rose in the Chinese market, but then narrowed.
Meanwhile, China’s Evergrande Group, which is in debt crisis, is proposing to postpone the early redemption date of RMB-denominated bonds of its core subsidiary, the mainland sector, Evergrande Group, and an online meeting with the bondholders has been held. It will end on the 10th.
Evergrande of China proposes postponement of early redemption of RMB-denominated bonds
Original title:China Moves to Give State Firms More Power: Evergrande Update(excerpt)
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