HONG KONG, March 15 (Reuters) – China’s bond regulator has authorized China Great Wall Asset Management Co to issue 10 billion yuan ($1.6 billion) of financial bonds to buy assets from struggling property developers, the bad debt manager said on Monday. on its website.
China’s state-owned companies are expected to acquire more assets from cash-strapped private developers, analysts say, as Beijing steps up efforts to stabilize and tighten control over a crisis-hit sector that accounts for a quarter of its economy.
Great Wall is one of China’s four major asset management companies (AMCs) originally created to get rid of non-performing loans from major state-owned banks.
China Orient Asset Management said in a statement on Monday that it had issued 10 billion yuan of bonds at a coupon rate of 3.15%, after gaining approval last month.
A few public and private property developers have also previously issued notes or secured loan facilities for M&A financing, including China Merchants Shekou Industrial Zone Holdings Co. 001979.SZ and country garden 2007.HK.
($1 = 6.3753 Chinese Yuan)
(Reporting by Clare Jim; Editing by Sherry Jacob-Phillips)
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