Signage at the construction site of a China Evergrande Group development in Beijing. China has eased a rule relating to the three red lines loan limit imposed on mainland developers. Photo: Bloomberg
Signage at the construction site of a China Evergrande Group development in Beijing. China has eased a rule relating to the three red lines loan limit imposed on mainland developers. Photo: Bloomberg

China’s easing of ‘three red lines’ loan rules for property sector won’t have immediate impact on struggling developers, analysts say

  • China plans to exclude debt raised by a developer to acquire distressed assets of another home builder when calculating their ‘three red lines’ compliance
  • The three red lines that define thresholds on borrowings were outlined by Beijing in August 2020

Signage at the construction site of a China Evergrande Group development in Beijing. China has eased a rule relating to the three red lines loan limit imposed on mainland developers. Photo: Bloomberg
Signage at the construction site of a China Evergrande Group development in Beijing. China has eased a rule relating to the three red lines loan limit imposed on mainland developers. Photo: Bloomberg
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