Three biggest banks of China will provide fundraising support to Vanke and Midea Real Estate Holding Ltd. Bank of Communication Co Ltd issued two separate agreements on Monday.
To support China‘s embattled property sector, three of the country’s biggest commercial banks have agreed to give fundraising support to the property developers including industry Vanke.
A quarter of China’s economy comes from the property sector.
According to the two statements issued by the Bank of Communications (BoCom) on Wednesday, the bank has agreed to provide a 100 billion yuan ($13.98 billion) line of credit to Vanke and a 20 billion yuan line of credit to Midea Real Estate Holding Ltd.
The agreement will ease pressure on debt-laden developers and reverse a housing slump.
The bank stated that the agreement is a part of BoCom’s effort to endeavor 16 significant measures marked by the Chinese regulators that aim to boost liquidity in the property sector.
BoCom is supposed to offer loans for M&A deals and bond investments under the agreements.
BoCom said, “it will continue to fulfill the responsibility of a state-owned bank, (and) accurately promote high-quality economic development with high-quality financial services.”
Strategic agreements have been signed by the Agricultural Bank of China to provide credit support to five companies, including Vanke, Longer Group Holdings Ltd and China Resources Land Ltd.
Also the Bank of China Ltd said that it agreed to provide credit support of around 100 billion yuan to Vanke, the country’s second-largest developer by sales.
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