China is encouraging state-owned enterprises to acquire projects from cash-strapped property developers to help alleviate severe liquidity problems in the sector that could threaten financial and social stability.
Bad loan companies have extensive experience in disposing of bad assets, as well as project mergers and acquisitions, and their involvement can help dissolve risks in China’s troubled real estate sector, the state-run newspaper said.
The article does not mention the names of the regulators or of the companies summoned by them.
China has four major AMCs – Cinda, Huarong, China Orient and Great Wall – which were originally created to sell non-performing loans from the major state banks.
On Wednesday, China Evergrande Group said it aimed to have a preliminary restructuring proposal in place within six months, as the debt-ridden property developer scrambles to reassure creditors spooked by defaults since its finances began to unravel last year.