According to sources cited by Chinese media outlet, Cailianshe
It is reported that some Chinese state-owned firms have told regulators to consider adjusting the 'three red lines' on lending restrictions to property developers in order to facilitate mergers and acquisitions within the space.
This is arguably to do with the pressure faced by most Chinese property developers now with them struggling to survive on their own. But then again, the so-called 'three red lines' are a bit of a joke in all honesty.
A good example is Kaisa, who actually passed the test (a metric in which Beijing looks at to decide who gets to borrow) back in June and look where they are now. It's all to do with "creative accounting" so I'm not sure what adjusting these arbitrary values will do and if anything else, it may just exacerbate the striking debt conditions in the industry.
