Whitelisted China projects win 5.6tn yuan loans

Staff reporter and agencies

Chinese banks have approved 5.6 trillion yuan (HK$6 trillion) worth of loans to property projects under a mechanism to support the construction and delivery of 14 million homes, the National Financial Regulatory Administration said yesterday.

Credit lines to "whitelisted" projects issued by commercial banks reached 5.03 trillion yuan in 2024, exceeding the target of 4 trillion yuan, and the figure further increased by 570 billion yuan to 5.6 trillion yuan, vice chairman Xiao Yuanqi said.

The funds provide sufficient and stable financial support for completing and delivering real estate projects, he said.

Meanwhile, a Shimao (0813) lender is in talks with private credit investors in hopes of offloading a US$1.3 billion (HK$10.14 billion) loan due this year tied to a luxury residential tower that is key to a restructuring at the defaulted Chinese developer, according to people familiar with the matter.

Singapore-based United Overseas Bank reached out to investors in recent weeks for a deal regarding the HK$10 billion loan, it said.

The loan, taken by Shimao in 2022, matures on September 30 and is backed by the Beacon Peak complex located within the Kowloon Tong neighborhood in Hong Kong.

Elsewhere, indebted property developer China Vanke (2202) is in advanced talks to sell a controlling stake in VX Logistics to Singaporean sovereign wealth fund GIC, a person with knowledge of the matter said.

Vanke's next yuan-denominated bond repayment deadline is Jan. 27, with a total US$3.4 billion due this year.