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M&A will help Chinese property firms lower debt, PBOC official says -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – The logo for China Evergrande Group can be seen at the headquarters of property developer in Shenzhen (Guangdong province), China on Sept. 26, 2021. REUTERS/Aly Song

BEIJING, (Reuters) – Mergers or acquisitions on the Chinese property markets will lower firms’ debts, Zou Lan (head of financial market at People’s Bank of China, PBOC) said Thursday.

Zou stated to reporters that mergers and acquisitions between real estate firms are the best market-oriented ways for companies to manage risks.

After regulators intensified their campaign to deleveraging the sector’s over-extended financial system, Chinese real estate companies have experienced severe liquidity problems this year. This has led to defaults at some of China’s most indebted firms.

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