Possible measures to prevent debt risks in the real estate sector

Strong measures are expected to prevent concentrated debt risk in the real estate sector, said Dong Jianguo, vice-minister of housing and urban-rural development, on Wednesday.

Dong said the ministry will continue cooperating with financial regulatory authorities to ensure the effective implementation of various policies in the realty sector. He stressed an impartial approach to meet the reasonable financing needs of real estate enterprises with different ownership structures.

The measures aim to assist real estate firms experiencing temporary financial stress in resolving short-term cash flow issues, facilitating their return to normal operation, and firmly preventing the concentrated outbreak of debt default risks.

Dong said that, in cases where realty companies' illegal activities lead to insolvency and loss of operational capability, the ministry will follow legal and market-oriented principles in dealing with such enterprises.