China to order developers to disclose commercial paper debt every month – sources

 China to order developers to disclose commercial paper debt every month – sources

The Taoyuan Xindu Kongquecheng apartment compound developed by China Fortune Land Development is seen in Zhuozhou, Hebei province, China March 19, 2021. REUTERS/Lusha Zhang

HONG KONG, July 16 (Reuters) – Chinese regulators want property developers to disclose details of rapidly growing commercial paper issuance in their monthly reports, said three sources, as part of Beijing’s move to rein in ballooning debt in the property sector as the economy slows.

Real estate developers in the world’s second largest economy are major issuers in the commercial paper market, which saw new issues worth 3.6 trillion yuan ($556.00 billion) in 2020, up 20% from 2019.

Commercial paper, which is not counted as interest-bearing debt, is commonly used in the property sector as a payable that promises construction suppliers a payment on a future fixed date, usually within one year, though the suppliers sometimes sell the paper before maturity at a small…

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