Evergrande has pledged to resume its stalled projects as developers try to woo home buyers who refuse to pay mortgages for unfinished developments.
It is understood that the company will restart construction on 38 developments on September 30. For the record, it has resumed construction on 668 of the total 706 projects.
Chinese developers are now under pressure to complete pre-sale homes after angry buyers across the country stopped making loan payments.
In the meantime, Chinese authorities are working to ensure that real estate companies complete apartment developments. As a result, all development in the city of Zhengzhou that has been halted must be resumed by October 6 at the latest.
In aid, the central government has stepped in by offering 200 billion yuan in special loans to ensure stalled housing projects are delivered to buyers.
The local government is urging builders to raise funds by selling undeveloped land and other assets, in addition to a financing platform established by the authority that will take over the projects of developers experiencing liquidity problems.
Not only that, but policy makers also make it easier for some developers to raise funds in the local bond market. Even so, Evergrande still failed to capitalize on it.
Evergrande is currently working on an offshore debt restructuring plan, which it aims to announce later this year after failing to deliver an initial plan in July as previously promised.
