BEIJING (Reuters), Several of China’s largest property developers have plans to issue asset-backed bonds in the immediate future. This further indicates that regulators marginally expand financial channels for developers, despite Evergrande’s current debt crisis.

China Evergrande is struggling with debts exceeding $300 billion. On Friday, China Evergrande stated that it could not guarantee sufficient funds to pay off its debts. This prompted the top financial regulators in the country to relax the market.

Moody’s (NYSE 🙂 stated last week that any potential fallout could be controlled and that normal financing needs for developers would be met. However, the sector faces another year of difficult funding conditions and risks.

Country Garden is the top-rated property developer in the country. On Sunday, Country Garden stated that they are considering applying to issue supply chain asset-based securities.

The company stated that supply chain ABS products are an innovative way to finance upstream suppliers and can help small and medium businesses overcome financing challenges.

The statement also stated that it pledged to reduce company risk through prudent operations.

Huafa Industrial (and Greentown China) have also received feedback from regulators on plans to issue ABS in excess of 16 billion yuan ($2.51billion). The Shanghai Stock Exchange announced on December 3.

China Vanke, according to the Securities Times, also intends to issue ABS in supply chain worth 777m Yuan.

Analysts with CICC noted that restrictions on bond financing for domestic real estate have been eased and that November’s bond issuance was about three times as high as October. They also added that the recovery in bond financing has begun in a systematic way.

China’s property markets, which account for about a quarter (according to certain metrics) of China’s gross domestic product, have been cooling rapidly since May. Sentiment has been shaken by increased liquidity stress, which has caused some of China’s most indebted developers to collapse.

Analysts don’t think Beijing will slow down its drive to restrain developers at high leverage levels. However, analysts do believe that Beijing may make some changes to help ensure sales and home prices stay steady.

Reporters Xinhua and a securities regulator official said on Sunday that the regulators would help private firms raise funds “properly”, especially for those that are affected by recent issues with debt.

($1 = 6.3758 renminbi)