Chinese city eases rules for developers amid cash crunch

BEIJING: The Chinese city of Chengdu has announced measures to make it easier for developers to sell properties, making it the first to loosen restrictions on the sector that has come under intense pressure following a debt crackdown by Beijing.

The announcement comes after several real estate companies — led by industry giant China Evergrande — were plunged into financial crisis in the past year after China embarked on a regulatory drive to bring an end to speculation and leverage.

That left them struggling to meet their debt obligations owing to the fact they could not offload properties or borrow more cash.

But on Wednesday, the southwestern city said it would speed up approvals for home sales and property loans, while easing restrictions on the use of pre-sales proceeds.