China Tightens Bond Sale Rules for Developers to Curb Debt
- Home builders can sell interbank bonds for refinancing only
- No more than 85% of debt can be repaid with new bond proceeds
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China has taken a fresh step to rein in debt growth among the nation’s property developers, amid signs that a strong housing market recovery has prompted policy makers to refocus on risk prevention.
The National Association of Financial Market Institutional Investors, an influential body in the nation’s vast interbank market, has issued new guidelines that allow residential property developers to apply for new bonds that can only be used for debt refinancing, according to people familiar with the matter, citing guidelines from NAFMII.