China central bank to support asset sales by troubled developers

State-owned enterprises enlisted to cut debt loads for companies like Evergrande

20211230N Evergrande Guangzhou

The People's Bank of China hopes that transferring responsibility for housing projects to healthier companies will ensure a smooth handover to buyers. (Photo by Yusuke Hinata)

IORI KAWATE, Nikkei staff writer

BEIJING -- China's central bank will help struggling developers sell assets to companies on firmer financial footing, looking to whittle away at the mountain of debt in the real estate sector.

Zou Lan, head of financial markets at the People's Bank of China, said Thursday that the central bank will work with the China Banking and Insurance Regulatory Commission to support deals involving property under construction as well as equity and assets of developers' subsidiaries.

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