China Builders Won’t Get Much Help From Loan Change: Nomura (1)

Published 9 February 2022, 04:49:42.966 GMT

(Bloomberg) -- China easing a cap on loans to fund public rental housing may not be a significant boost to developers’ liquidity considering their lack of exposure to that segment, said Nomura credit desk analyst Iris Chen.

* Most private and state-owned builders don’t have many such projects, she told Bloomberg

* Government’s approach to easing appears targeted toward achieving social goals and not widespread efforts to lift the property sector, said Charles Macgregor, Head of Asia at Lucror Analytics

* NOTE: China’s high-yield dollar bonds, a market dominated by developers, fell for a third day Tuesday, according to a Bloomberg index

** They were little changed Wednesday morning, according to credit traders

By Wei Zhou