More Chinese developers are looking to issue domestic bonds on Reuters

SHANGHAI (Reuters) – Three Chinese developers, including the main operating platform of Country Garden Holdings Co. and Longfor Group Holdings Ltd, plan to sell bonds in China to raise 18 billion yuan ($ 2.8 billion), the official record system showed late. On Wednesday, there was evidence that Beijing was easing liquidity tensions in the cash-rich sector.

China tightened funding restrictions on the real estate industry earlier this year, exacerbating the financial problems of China Evergrande Group’s debtor and causing liquidity stress across the sector, fearing that some could destabilize China’s economy.

In recent weeks, there have been signs that some funding channels are easing a bit for developers.

According to the file system of China’s interbank bank market, Country Garden Real Estate Group, controlled by Country Garden Holdings, plans to issue 5 billion yuan of medium-term banknotes.

Chongqing Longhu Enterprise Development Co., the main platform of Longfor Group, plans to issue 3,000 billion yuan in debt.

Separately, the state-owned developer China Overseas Enterprise Development Group Co. aims to issue three billion yuan in debt, according to the record dossier.

There have been other signs of life in the home bond market for developers. Corporate bonds issued by real estate companies nearly tripled in November compared to the previous month, to 37.1 trillion yuan, the official China Securities Journal reported on Wednesday.

There are also signs of relaxation of the marginal lending. Last month, sources told Reuters that financial regulators had told some Chinese banks to provide more loans to property companies to develop projects.

But the Chinese authorities have not signaled that the “three red lines” will be relaxed, as the financial requirements that developers must meet in order to obtain new bank loans were set by the central bank last year. Analysts say Beijing will continue its anti-development campaign despite recent policy changes.

($ 1 = 6.36673 renminbi)