Heard on the Street: Chinese regulators are considering making it easier for developers to buy assets from struggling peers like Evergrande to protect home buyers and stem any contagion
China’s overarching crackdown on the property sector may finally have gone too far.make it easier for developers to buy assets
from struggling peers. Under current rules introduced last year, developers’ capacity to increase their borrowings depends on how well they have kept leverage below certain metrics called the “three red lines.” That means healthier companies, even state-owned ones, are reluctant to take over unfinished projects from troubled rivals.
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