HONG KONG – Cash-strapped developer Country Garden Holdings said on Feb 3 that more than 30 of its projects had been listed by Chinese local governments as suitable for financing support, as the authorities aim to inject liquidity into the crisis-hit sector.

China’s largest private property developer said in a statement to Reuters that its projects were included on the so-called “white lists” of the provinces of Heinan, Hubei, Sichuan and Shandong, as well as the municipality of Chongqing. The developer, which defaulted on its offshore debt in late 2023, hopes to enter the lists of Guangdong and Hunan provinces, among others.

Country Garden said the projects, after being added to the lists, could receive financing support, which would in turn help ease the pressure on its liquidity and ensure the completion of homes.

Sunac China Holdings, which completed a US$9 billion (S$12 billion) offshore debt restructuring in 2023, said in a statement to Reuters on Feb 5 that more than 90 of its projects had been added to white lists from cities including Beijing, Tianjin, Chengdu and Chongqing.

“As the financing comes in place, the cash-flow pressure of the development and operation of Sunac projects will be eased, which will further ensure the work of ‘home delivery’ in different cities,” the developer said.

CIFI Holdings Group, another big developer that is now working on an offshore debt restructuring, said in a statement on Feb 4 that 18 of its projects had been white-listed by the local authorities, including in the cities of Chongqing, Beijing, Tianjin and Wuhan.

China aims to ramp up financing for residential projects in the coming days as part of its support measures for real estate firms, but banks’ reluctance to lend to the sector will remain a major obstacle for the distressed developers that need fresh funding the most.

Under the “project white list” mechanism, governments of 35 cities across the country are gearing up to recommend to banks residential projects that need financial support. REUTERS