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Chinese banks and bad-debt managers urged to rescue real estate

Builders in falling market struggle to pay creditors as homebuyers shy away

High-rise apartments under construction in Henan Province in 2021. Chinese regulators have told state-owned financial entities to help struggling real estate developers. (Photo by Noriyuki Doi)

China's financial regulators have instructed the country's state-owned asset management companies (AMCs) and nearly 20 banks to help a dozen Chinese real estate developers that are having trouble paying their bills, including purchasing their liabilities, market insiders told Caixin.

The instructions came as the real estate industry's liquidity situation has deteriorated, with many builders struggling to refinance debt and pay creditors as homebuyers and investors stand on the sidelines of a slumping property market.

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