- Only 6.3 per cent of all rated Chinese developers can comply with the central bank’s red line limits on debt, according to S&P’s analysis
- Seven developers, or more than 20 per cent of those listed on the Shenzhen, Shanghai or Hong Kong exchanges, are tagged red, according to Northeast Securities
China’s corporate defaults may set a record this year when a trio of the central bank’s debt limits kick in this month, as they crimp the ability by borrowers to use loans to repay their outstanding debt.
One in five of China’s biggest real estate developers including China Evergrande Group will be barred from borrowing any more money from banks according to the three red lines on debt drawn by the People’s Bank of China, the state-owned Economic Information Daily said.
Pearl Liu | South China Morning Post