China tightens offshore financing channel for real estate firms

BEIJING, July 12 () – China’s state planner said on Friday it tightened a financing channel for real estate companies by requiring that any new offshore bond issues be used only to replace medium- and long-term offshore debt maturing in the next year. The National Development and Reform Commission (NDRC) said in a notice that real estate companies must improve information disclosure and specify the usage of funds raised offshore in the bond prospectus. Real estate companies must effectively contain foreign debt risks, the NDRC said. (Reporting by Yawen Chen, Cheng Leng and Beijing Monitoring Desk; editing by Darren Schuettler)Our Standards:The Thomson Trust Principles.