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Chinese property executives ask regulators for ‘appropriate loosening’ of restrictions

© Reuters. FILEPHOTO: This scooter takes a man past the apartment buildings that were being built near Zhengzhou in Henan, China. January 19, 2019, Photo taken January 19, 2019 REUTERS/Thomas Peter

SHANGHAI, (Reuters) – Representatives of 10 Chinese property firms met with government regulators in order to request an “appropriate relaxation” of policy restrictions. Financial news outlet Yicai reported that the meeting took place late Friday.

The meeting saw senior executives urging authorities to relax regulations in order to stabilize market expectations and provide support for real home buyers, rather than speculators, Yicai reported.

Yicai said that senior developers from China Vanke Co Ltd and Sunac Holdings attended the meeting, as did the Director of Real Estate Department of Ministry of Housing Urban-Rural Development and director of China Real Estate Association.

Many Chinese property companies are experiencing a liquidity crisis due to weakening demand and stricter regulations. Loan caps, which were imposed by government to curb rampant borrowing, have had a negative impact on property companies.

Markets have been rattled by the potential collapse of high-debted realty firms like China Evergrande Group, raising concerns about systemic economic risks.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.