China still requires easier policies in the second half of the year to consolidate its property market as developers are under great repayment pressures of over CNY310 billion of maturing bonds, the 21st Century Business Herald reported. Bond financing is expected to be further eased with lower costs in H2, as local authorities give clear support, including the provision of endorsement or insurance mechanisms to smoothen bond issuance especially by private developers, the newspaper said citing Yan Yuejin, director of E-house China Research and Development Institution. The maturity will peak in July with over CNY83 billion bonds maturing, followed by high amount in August and September, and possible debt defaults may increase should developers fail to roll over maturing bonds or home sales remain sluggish, the newspaper said citing a report by CRIC.
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