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China’s Greenland Holdings Corp said a unit has secured loans from state-owned shareholders and the parent of Yango Group signed a debt relief agreement with a state-backed distressed asset managers.
Greenland said in a statement on Monday that a subsidiary plans to borrow a combined 3 billion yuan from two state-owned shareholders. The two-year loans, with an annual interest rate of 6 per cent, would help maintain ample liquidity, and help the company’s efforts to sure the smooth handing over of homes, it said.
China Huarong Asset Management, a major bad loan company, said in a statement that it has recently signed a framework agreement with Yanggo Longking Group to restructure its debt. Yanggo Longking is the parent of cash-strapped developer Yango Group.
The move is a concrete step by the Chinese government to defuse risks in the real estate market and reinvigorate Yango, Huarong said.