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China Developers Struggle to Get Funded

CHINA PRESS
MNI (Singapore)

Chinese developers have turned to domestic markets for raising funds but default risk is still booming as debt maturity is peaking in July and August, Securities Daily reported on Wednesday. The financing amount of developers slumped by 56.5% year-on-year in the first half of the year as they have been downgraded due to credit risk, it said. The debt issue in offshore market is also shrinking with no issuance in both February and May. As restriction on the fund-raising of the sector is relaxing and market confidence is recovering, the financing environment is expected to improve in the second half, but for those heavily-indebted developers, the default risk remains big, the report warned.

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