HONG KONG - Property developers Longfor Group Holdings Ltd and Midea Real Estate Holding Ltd plan to raise a total of 35 billion yuan ($5 billion) in debt, China's National Association of Financial Market Institutional Investors said.
NAFMII, which has semi-official status under the auspices of China's central bank, said that Longfor had completed the registration for 20 billion yuan worth of debt, while it had accepted an application by Midea to raise 15 billion yuan.
The moves come after a plan to ease a liquidity crunch in the property sector, outlined by Chinese regulators on Sunday, which sent Chinese property stocks and bonds soaring on Monday.
The latest support measures came as cash-strapped developers struggle to tap sources of fresh funding to finish projects and pay suppliers. Several developers have defaulted on their offshore debt obligations over the past year.
NAFMII said that as well as Longfor and Midea a number of other private developers were preparing for bond issuance registration in China's onshore market. It did not give details.
Last week it said it would widen a programme to support about 250 billion yuan ($34.5 billion) worth of debt offerings by private firms.
China's property sector, once a pillar of growth for the world's second-largest economy, has slowed sharply this year as the government sought to restrict excessive borrowing.
The clampdown triggered falls in property sales and prices, bond defaults and the suspension of construction, angering homeowners who have threatened to stop mortgage payments.
($1 = 7.0330 Chinese yuan renminbi)
(Reporting by Sumeet Chatterjee; Editing by Alexander Smith)