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In a major shift, China may relax its 'three red lines' property rules
In a major shift, china may relax its 'three red lines' property rules.
— BTBMarkets (@BTBMarkets) January 6, 2023
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China property shares rise on easing of mortgage rules for some buyers
Shares of Chinese property developers climbed on Friday, lifted by more state support measures to bolster the highly indebted sector as China prepares to reopen its pandemic-hit economy. Hong Kong's Hang Seng Mainland Properties Index rose close to 4 per cent shortly after the market opened, outperforming a 0.3 per cent increase in the broader market, though gains fell back to 0.5 per cent by 0223 GMT. Logan Group jumped 11 per cent, while CIFI Holdings gained 6.3 per cent. The central bank said on Thursday that for cities where the selling prices of new homes fall month-on-month and year-on-year for three ... (full story)
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*CHINA MAY EASE ‘THREE RED LINES’ PROPERTY RULES IN MAJOR SHIFT
— tradehaven (@Trade_Haven) January 6, 2023
The three red lines were introduced in August 2020. They stated property should adhere to the following rules:
1. Liabilities should not exceed 70 percent of assets (excluding advance proceeds from projects sold
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on contract)
— tradehaven (@Trade_Haven) January 6, 2023
2. Net debt should not be greater than 100 percent equity.
3. Money reserves must be at least 100 percent of short term debt.