Chinese Developers Have Billions in Debt Off Balance Sheet: JPMorgan

Chinese Developers Have Billions in Debt Off Balance Sheet: JPMorgan
A man walks past a 'No Entry' traffic sign near the headquarters of China's Evergrande Group in Shenzhen, Guangdong Province, in China on Sept. 26, 2021. Aly Song/Reuters
Updated:
China’s embattled developers, Evergrande and other property companies, have reportedly shifted billions of dollars in debt to off-balance sheet vehicles, according to recent research from investment bank JPMorgan. Once this additional debt is counted in, the leverage ratios rise distinctly.
Those property developers have utilized the tactic to help comply with new borrowing cap rules introduced by the Chinese regime last year, reported Reuters citing the JPMorgan research.