China developers seek steps to ease sector's troubles

Beijing

CHINA'S top developers have asked the government to ease its property sector crackdown, local media reported, amid growing concerns about the fallout from China Evergrande Group's debt crisis.

Senior managers of 10 firms asked for "moderate" loosening of real estate policies at a meeting organised by government-linked industry group China Real Estate Association, China Business News reported on its WeChat account.

The real-estate division head of the Ministry of Housing and Urban-Rural Development attended, as did companies including Poly Developments and Holdings Group Co, China Vanke Co and Sunac China Holdings, according to China Business News.

The developers' main requests include stabilising market expectations, support for home buyers that have genuine housing needs and adjustments in land prices, the report said, citing unidentified people with knowledge of the meeting.

China's central bank last Friday broke its silence on the Evergrande debt crisis, saying risks to the financial system stemming from the developer's struggles are "controllable" and unlikely to spread.

A surprise default by Fantasia Holdings Group Co and a warning from Sinic Holdings Group Co that a default was imminent have stoked concerns about contagion.

The China Real Estate Association in a statement confirmed a symposium with developers took place in Beijing on Friday afternoon.

The companies briefed attendees about business operations in the first three quarters of the year, and gave opinions and suggestions, it said, without elaborating.

Speculation over a meeting contributed to a rally in the shares of Chinese developers early last week.

A report last Saturday on the Economic Observer Network said the housing ministry is drafting rules to strengthen the supervision of developers' pre-sale funds after various forms of violations by companies. The report, which cited an unnamed source close to the authorities, didn't provide more details. BLOOMBERG