(Reuters) Chinese regulators are requesting the state-owned property entities and large players in the private sector to acquire in-crisis developers to avert risks to the economy.
In line with the new calls, the regulators have urged Chinese banks to fund the acquisition of the projects owned by at-risk-of-default developers.
The regulators recommend full acquisition rather than holding of stakes in the troubled developers as risks to the financial system mount.
The developers without financial difficulties have also been encouraged to float bonds to finance the acquisitions. Developers that include China Merchants Shekou Industrial Zone Holdings Co. are said to be preparing to issue debt through the interbank market to fund the acquisitions.
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