China's BoCom agrees to support eight property firms
The company logo is seen at an office of Bank of Communications in Beijing, China, August 27, 2020. REUTERS/Thomas Peter/Files
BEIJING : China's Bank of Communications Co Ltd (BoCom) said on Thursday that it signed strategic cooperation agreements to support eight property firms, responding to Beijing's call to ease a severe liquidity crunch in the sector.
The bank said it will deepen cooperation with the property firms, including Longfor, Gemdale and Greentown, in terms of property development loans, loans for M&A deals and bond investments, according to a statement released by the lender.
Chinese authorities have been stepping up measures in recent weeks to support developers, after many defaulted on their debt obligations and were forced to halt construction of homes.
The property sector makes up about a quarter of China's economy.
BoCom said it will "actively carry out the responsibility of a state-owned bank" and to "continue to optimize the allocation of real estate credit resources."
Last month, six of China's biggest commercial banks, including BoCom, lined up at least $162 billion in fresh credit to property developers.
Among them, BoCom agreed to provide a 100 billion yuan ($14.34 billion) credit line to Chinese developer Vanke and a 20 billion yuan credit line to Midea Real Estate Holding Ltd.
($1 = 6.9748 Chinese yuan renminbi)
