Property developers with a gearing ratio above 100 percent China 2020
As of November 2020, all of the Chinese property developers that had received a triple C rating from S&P Global Ratings did have a gearing ratio above 100 percent. Not using excessive amounts of debt to finance assets is part of the "Three Red Lines" regulation that aims at guaranteeing real estate companies not to encounter solvency issues. The regulation should reduce the overleveraging of the industry, but as of June 2021, only half of China's 30 largest developers have complied with the "Three Red Lines" requirements.
