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Chinese Urban Developers Could See Continued Government Support Despite Pivot to Cash-Generating Model, Fitch Says

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Urban developers in China could expect continued government support as cash-generating business models are not seen to weaken the connection, Fitch Ratings said in a note published Sunday.

The level of support will vary according to sub-sector, with municipal, county, and district-level developers able to expect higher support levels and industrial area developers expecting lower support, the debt watcher said.

Fitch-rated urban developers could see higher leverage of about 40 times to 45 times and could remain higher in the near term.

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