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Chinese property developers bet on higher returns with mezzanine loans

Reuters  |  HONG KONG 

By Clare JimHONG KONG (Reuters) - Chinese property companies are increasingly tapping expensive mezzanine loans as they seek out higher returns, a trend that could undermine government efforts to cool the country's booming real estate sector and rein in debt.Many developers are turning to offshore mezzanine loans as government measures to tighten credit and clamp down on shadow banking in China are increasingly felt, according to lenders.Others are taking out the loans for M&A activities or to raise working capital that would allow them to prolong construction periods in hopes that the ...

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First Published: Fri, June 08 2018. 13:40 IST