As the real estate market continues to slump, the Chinese government supports companies in their rational financial needs, while at the same time making companies that have fallen into serious debt ``pay an appropriate price'' to support the market. We have set out a policy of bankrupting or reorganizing the company based on principles.
This was announced by China's Minister of Housing, Urban and Rural Development Nii Hong on the 9th at a press conference held in Beijing on the occasion of the National People's Congress.
In order to improve the real estate market, which continues to be in a slump, Mr. Ni expressed his intention to support companies' rational financial needs, and offered Japanese yen to real estate businesses that were determined to be suitable for financing by the end of last month. announced that it had approved over 4 trillion yen in loans.
On the other hand, regarding real estate companies that have fallen into serious insolvency, he stated, ``We will make companies that have committed acts that harm the interests of the people pay appropriate compensation in accordance with the law,'' and have declared bankruptcy based on market principles. The company has announced plans to either change or reorganize the company.
In China, a major real estate company, Evergrande Group, was ordered liquidated by a Hong Kong court, and some creditors of another major company, Bi Guiyuan, filed for liquidation in a Hong Kong court. is becoming more serious.
The Chinese government appears to be aiming to stabilize the real estate market, which accounts for about one-quarter of gross domestic product (GDP), including related industries, by proceeding with such corporate restructuring.