China National Association of Financial Market Institutional Investors (NAFMI) expanded its key financing support program for private firms including real estate companies to RMB 250bn ($34.5bn). Bloomberg notes that there were no details regarding how much bond financing has been supported or how much aid is meant for developers. The upgraded program supports financing options like bond guarantees, credit enhancement and bond purchases in an effort to stabilize the economy.
Separately, given the rise in defaults and weak property market sentiment, Logan Group’s holders of its 5.75% 2025s sued the company with a winding-up petition in a Cayman Islands court. This comes after the developer defaulted on six dollar bonds in August. Also, two of its subsidiaries are facing similar winding-up petitions in Hong Kong. Logan’s dollar bonds were trading flat at 5-8 cents on the dollar.