BEIJING/SHANGHAI (Reuters) -&nbsp;China&nbsp;will boost&nbsp;financing&nbsp;for good&nbsp;quality&nbsp;property&nbsp;developers&nbsp;and roll out a 100 billion yuan ($14.86 billion)&nbsp;support&nbsp;plan for rental housing loans, the official&nbsp;Xinhua&nbsp;news agency said on Friday.
Reporting the latest move to ease a liquidity crunch which has plagued the real estate sector since mid-2020,&nbsp;Xinhua&nbsp;said financial regulators have drafted a work plan to guide&nbsp;quality&nbsp;developers' balance sheet back to a safe range.
The plan mainly targets high&nbsp;quality&nbsp;property firms with relatively big size and systemic importance, it said.
Regulators will improve the "three red lines" rule for 30 pilot property firms, without giving specific names of the firms. The "three red lines" policy restricts the amount of new borrowing property&nbsp;developers&nbsp;can raise each year by placing caps on their&nbsp;debt&nbsp;ratios.
Under the plan, authorities will encourage financial institutions to negotiate to extend&nbsp;debt&nbsp;to&nbsp;quality&nbsp;developers&nbsp;on a reasonable basis, it said.
Authorities will also&nbsp;support&nbsp;developers' offshore&nbsp;debt&nbsp;repayment by providing policy&nbsp;support, including by helping to improve management of foreign exchange.
The property sector, which accounts for roughly a quarter of&nbsp;China's gross domestic product, has struggled with defaults and stalled projects, hitting market confidence and weighing on growth.
($1 = 6.7273 Chinese yuan renminbi)
&nbsp;
(Reporting by Beijing and Shanghai newsroom; Editing by Christian Schmollinger &amp; Simon Cameron-Moore)

you might like

China to support financing, debt extension for quality developers- Xinhua