China’s Country Garden says over 30 projects have local government support

HONG KONG (Reuters) – Cash-strapped developer Country Garden said on Saturday more than 30 of its projects had been listed by Chinese local governments as suitable for financing support, as authorities aim to inject liquidity into the crisis-hit sector.

China’s largest private property developer said in a statement to Reuters that its projects were included on the so-called “white lists” of the provinces of Heinan, Hubei, Sichuan, Shandong and the municipality Chongqing. The developer, which defaulted on its offshore debt late last year, hopes to enter the lists of Guangdong and Hunan provinces among others.

Country Garden said the projects, after being added to the white lists, could receive financing support, which would in turn helps ease the pressure on its liquidity and ensure the completion of homes.

Reuters reported on Friday that China aims to ramp up financing for home projects in the coming days as part of its support measures for real estate firms, but banks’ reluctance to lend to the sector will remain a major obstacle for the distressed developers that need fresh funding the most.

Under the “project white list” mechanism, governments of 35 cities across the country are gearing up to recommend to banks residential projects that need financial support.