Current credit conditions are separating the wheat from the chaff in the Chinese property sector, with larger, better-rated developers enjoying increasingly favourable borrowing conditions and winning business at the expense of smaller ones.
Despite the potential for a slight overall drop in funding costs this year, there is still a highly discriminatory market vibe, according to Moody’s.
“The difference between highly rated developers and low-rated developers is becoming apparent,” Franco Leung, the rating agency's associate managing director, said at a press briefing in Hong Kong on Wednesday. “Developers with good credit quality and scale will benefit from the current credit conditions while the lowly-rated developers...
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