2014-09-07

Credit Flows to the Big Developers

China is making it easier for large developers to swallow their broke competitors by easing credit restrictions.

China Eases Credit Rules for Some Property Developers
The biggest developers are the only ones likely to benefit from this credit loosening. China has more than 85,000 property developers, and authorities have been trying to streamline the number of companies as part of economic overhauls to make the economy less reliant on property investment for growth. Lenders have also refrained from offering loans or favorable terms to smaller developers. That puts larger developers in a position to snap up smaller ones if they run into difficulties. "For small developers, it might actually have little or few effects initially because the regulation states that it will apply only to a select few," said one of the people.

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