Market reactions were mixed. Chinese developer dollar bonds were indicated 0.5 cents higher on average after the news. But shares slumped for builders not on Ping An Bank’s list, including Country Garden Holdings Co., Shimao Group Holdings Ltd. and Sunac China Holdings Ltd.
Major Chinese lender Ping An Bank Co. has put 41 developers on a list of builders eligible for its funding support, a shift toward more lending to a property sector in crisis following government steps to stanch the pain.
The bank decided to adjust criteria related to extending credit lines to meet builders’ reasonable funding demands, people familiar with the matter said, requesting anonymity discussing private matters. That mirrors a task that authorities set out in a major annual government economic conference last month, and comes after regulators drafted their own list of builders to guide financial institutions as they weigh more lending.
