According to Reuters, state-owned property companies in China intervened to rescue cash-strapped developers as Beijing moved to strengthen its control over the crisis-hit sector.
As reported by data firm Tianyancha, major private developer Sunac transferred a project company in Guangzhou to the Guangzhou Radio and Television Real Estate Development Group on April 1.
The paper.cn cited Tianyancha, saying that Guangzhou Rongfa Real Estate, a Sunac subsidiary, has transferred its remaining 50% stake in Guangzhou Chuangxing Real Estate Development. Guangzhou Radio and Television Real Estate currently own Guangzhou Chuangxing.
At present, Guangzhou Chuangxing is developing the Xinxin Highway West Residential Community Project in Zengcheng District, Guangzhou City. Sunac won the land in the first batch of centralized land supply in Guangzhou from April 26 to 27, 2021, for 2.83 billion yuan (444.6 million dollars).
Sunac is currently cooperating with Gemdale on the project.
As reported by Reuters, Sunac China recently has also sold its assets to state-owned buyers, including Beijing Capital Group and Huafa Group.
Shares of Sunac on the Hong Kong stock exchange were suspended on April 1 for failing to declare annual results on time, along with over 30 other Chinese companies.
While support from Beijing signals a positive message for the debt-hit industry in the short run, experts raise doubts if the move can help the sector in the long run.
ANZ stated in a report last week, “We doubt how successful ‘nationalizing’ the property sector can be, if there is such a plan.”