China Eases Some Loan Curbs, Logan Rating Cut: Evergrande Update
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China’s central bank said loans to fund low-cost public rental homes are not subject to regulatory curbs on property lending, calling on banks to boost support for such affordable-housing projects.
Chinese developer Logan Group Co. was cut further into junk territory by Fitch Ratings, which cited “recent disclosure of a private debt arrangement that is off its balance sheet.” The group’s dollar bonds were already set to decline to their lowest levels in three weeks amid rising concerns about hidden debt. Weighed by the weakness of Logan and other risky borrowers, Chinese junk dollar bonds fell 2 to 3 cents.