Country Garden, Sino Ocean added to finance support list

Bloomberg

Country Garden (2007) and Sino-Ocean Group (3377) have been included on a draft list of 50 developers eligible for financing support, according to people familiar with the matter, signaling a pivot by Beijing to help some of China's most distressed builders.

This came as the Securities Times reported that Shenzhen will cut the down payment by about a half to 40 percent when buyers acquire the second home.

CIFI Holdings (0884), another builder that has missed debt payments, was also included on the so-called white list, the people said. Regulators are set to finalize the roster and distribute it to banks and other financial institutions within days, the people said, adding that some details could change.

Bloomberg reported earlier this week that China is drafting a list to guide financial institutions as they weigh support for the property industry via loans, debt and equity financing. The scope of the funding -- and the long-term implications for creditors and shareholders -- remain unclear.

A Bloomberg Intelligence gauge of developer stocks has rallied this week on expectations that the financing help may alleviate fears of further contagion in China's property sector. Still, some investors were concerned the list would mainly comprise state-owned firms and leave out distressed builders most in need of the support.

Gemdale (0535), which hasn't missed any debt payments, is also on the draft list along with China Vanke (2202), Seazen Group (1030) and Longfor (0960), the people said.