Real estate move from China

China is preparing to relax strict rules on real estate developers’ access to credit. According to sources who spoke to Bloomberg, the Beijing government plans to relax debt ceilings for some real estate companies. China may also extend the grace period for these companies to meet their debt targets. The grace period set for June 30 could be extended by another six months. The real estate sector, which accounts for a quarter of the Chinese economy, entered a serious debt crisis in 2022, with some developers, including Evergrande, missing bond payments. The debt crisis was also fueled by strict rules called the “three red lines” that restrict companies’ access to refinancing. The Chinese government’s final decision to relax these rules would mark a dramatic change for the sector.