Chinese Authorities are Urging Acquisition of Projects of Troubled Real Estate Developers

China is urging large private and state-owned property companies to undertake acquisition of real estate projects from troubled developers, according to the official China Securities Journal. The move came in an effort to reduce risk in the real estate sector that is facing mounting debt posing greater risk to destabilize the economy.

The newspaper reported The People’s Republic of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) recently issued a notice to financial institutions to support such acquisition.

Earlier Chinese authorities have eased funding curbs in the real estate sector in an effort to prevent debt in the real estate sector spread across the economy.