Chongqing reveals 'whitelist' for lenders

Chongqing has informed banks of the first "whitelist" of property projects, which involves 314 projects and financing demands of 83 billion yuan (HK$90.75 billion).

The news came amid predictions that China Evergrande's (3333) offshore creditors may have to wait years for potentially tiny payouts.

The first loan of 330 million yuan to 107 projects on the whitelist was completed in Nanning, Guangxi province, mainland media reported.

Developers on the list were examined by five standards, including the projects should be in construction and the assets are equivalent to the funds, according to mainland media.

Chongqing's list involving 22 firms was sent to 28 main banks in the municipality.

Meanwhile, the liquidation order for China Evergrande (3333) could impact investors' expectations of the recovery rate on speculative-grade offshore bonds of defaulting Chinese issuers, said S&P.

Evergrande's offshore dollar bondholders stand to receive a potentially tiny payout in a complicated process that could take years to play out after the property giant was placed in liquidation, it said.

Also, Country Garden (2007) creditors are reportedly applying for its liquidation, and local banks may take over all its mortgaged assets in Hong Kong.

In other news, January sales of China's 100 major developers are expected to have dropped by a third to 281.53 billion yuan compared to last year.