Chinese developers exploit short-term debt loophole

Loophole unlikely to last but illustrates cat-and-mouse game Beijing having to play as it tries to curb corporate leverage and deflate property bubbles.

Chinese developers exploit short-term debt loophole

Chinese property developers are using short-dated notes to circumvent official efforts to curb corporate leverage and deflate regional property bubbles.

The National Development Reform Commission, which regulates corporate bond sales, virtually closed the door in April on new offshore debt issuance by property companies. Some of China's most indebted home builders have nonetheless got around the restrictions by selling notes maturing in just under one year's...

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