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China Developers Struggle To Get Funds-Securities Daily

CHINA PRESS
MNI (Singapore)

Chinese developers have turned to domestic markets to raise funds but default risks are still growing as debt maturities peak in July and August, the Securities Daily reported on Wednesday. The financing amount of developers slumped by 56.5% year-on-year in the first half as they have been downgraded due to credit risks, it said. Debt issuance in offshore markets is also shrinking with no issuance in both February and May. As restrictions on the fund-raising in the sector relax 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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