China’s property developers are borrowing more to finance their cash-starved operations, after the green light by the financial authorities and central bank opened the funding flood gate, in another sign of improving confidence in the beleaguered industry.
Bond financing in the property sector increased for the second month in October, rising 3.2 per cent from last year to 29 billion yuan (US$3.92 billion), according to data released on Tuesday by the China Index Academy.
The growth was partially due to last year’s low base, the research institute said, as October’s results was 32.4 per cent lower than the previous month. From January through October, bond financing in the property sector totalled 442 billion yuan, a decline of 25.6 per cent from the same period last year.
