Country Garden reveals its projects to have been included in the white list, making them eligible for financial support

Country Garden, the largest private property developer in China, revealed that its projects have been included in the “white lists” of provinces such as Heinan, Hubei, Sichuan, Shandong and the municipality Chongqing.

Chinese developer Country Garden, facing financial challenges, announced on Saturday that over 30 of its projects have received approval for financing support from local governments. The move comes as Chinese authorities strive to inject liquidity into the real estate sector. Country Garden, the largest private property developer in China, revealed that its projects have been included in the “white lists” of provinces such as Heinan, Hubei, Sichuan, Shandong, and the municipality Chongqing. The company, which defaulted on its offshore debt late last year, is aspiring to secure a spot on the lists of Guangdong and Hunan provinces, among others.

The inclusion of Country Garden’s projects in these lists signifies that they are eligible for financial support, a crucial step for the developer to alleviate liquidity pressures and ensure the timely completion of homes. This strategic move aligns with China’s broader objective of bolstering financing for real estate projects in the face of a crisis in the sector. Despite these measures, banks’ hesitancy to lend to the real estate industry remains a significant obstacle, particularly for distressed developers in urgent need of fresh funding.

The “project white list” mechanism, currently active in 35 cities across China, empowers local governments to recommend residential projects requiring financial support from banks. This initiative is part of the comprehensive support measures devised by the Chinese government to stabilize the real estate market. However, the effectiveness of these measures is contingent on overcoming the challenges posed by banks reluctant to extend credit to struggling real estate firms.

China aims to intensify financing for home projects in the coming days. While this move is intended to provide a lifeline to real estate developers, the inherent resistance from banks poses a formidable hurdle. The delicate balance between the government’s intent to stimulate the real estate sector and the banks’ cautious approach underscores the complexity of the current financial landscape.

Country Garden’s proactive efforts to secure a place on multiple “white lists” underscore the company’s determination to navigate the prevailing challenges in the real estate market. As the situation evolves, stakeholders will keenly watch whether this government-backed initiative can successfully address the liquidity woes plaguing developers and contribute to the overall stability of the real estate sector in China.