Chinese State Council Held Meeting with Real Estate Companies

Chinese state officials’ council held a meeting with real estate developers and banks in the southern city of Shenzhen as liquidity crunch looms over Chinese real estate sector, according to sources of Reuter.

China Vanke, Kaisa Group, Ping An Bank, China Citic Bank, China Construction Bank and CR Trust were participants of the meeting that took place on Monday, according to Reuters.

Earlier local media Cailianshe reported, regulators were to meet on Friday, November 5 to discuss liquidity crisis in Kaisa and Fantasia.

Chinese property developers in the last couple of months saw offshore bond defaults, credit rating downgrades and heavy debt note selloff raising contagion fears globally.

The contagion fears extended so deep that even Chinese state backed real estate firm Sino Ocean Group Holding Ltd. saw its bonds slumping as low as 73.48 cents on the dollar despite its bonds being investment grade rated by top tier credit rating agencies.