China Curbs 1+N Offshore Loans for Developers as Debt Oversight Tightens

1 articles · Updated · Bloomberg · Jul 23

China has told some bankers it will no longer allow local real estate firms to refinance with the offshore 1+N structure, according to people familiar with the matter.
The restriction also covers cross-border borrowers that use mainland property as collateral, widening the clampdown beyond developers alone.
The National Development and Reform Commission, which oversees Chinese companies’ foreign debt, delivered the guidance in recent months as Beijing strengthens scrutiny of overseas borrowing.
The move targets a funding channel widely used by distressed developers to ride out China’s prolonged property crisis, potentially narrowing refinancing options for a stressed sector.