China may ease ‘three red lines’ property rules in big shift

Beijing may allow some property firms to add more leverage by easing borrowing caps, and push back the grace period for meeting debt targets set by the policy, sources say. — Reuters

CHINA is planning to relax restrictions on developer borrowing, dialling back the stringent “three red lines” policy that exacerbated one of the biggest real estate meltdowns in the country’s history.

Beijing may allow some property firms to add more leverage by easing borrowing caps, and push back the grace period for meeting debt targets set by the policy, according to people familiar with the matter.