China’s bond regulator has approved China Great Wall Asset Management Co to issue 10 billion yuan ($1.6 billion) of financial bonds for buying assets from distressed property developers, the bad debt manager said in its website on Monday.
Chinese state-owned firms are expected to acquire more assets from cash-strapped private developers, analysts said, as Beijing steps up efforts to stabilise and tighten control over a crisis-hit sector that accounts for a quarter of its economy.
Great Wall is one of China’s four big asset management companies (AMCs) that were originally set up to dispose of non-performing loans from major state banks.
China Orient Asset Management said on Monday in a filing it has issued 10 billion yuan of bonds at coupon rate of 3.15%, after gaining approval last month.
A few state-owned and large private property developers have also previously issued notes or secured loan facilities for merger and acquisition financing, including China Merchants Shekou Industrial Zone Holdings Co and Country Garden.
- Reuters with additional editing by Sean OMeara
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