SHARES of Greenland Holdings Corp. and Yango Group Co. closed up yesterday after news the two struggling developers have won help from State entities to manage their debt crisis.

Greenland said a unit has secured loans from State-owned shareholders and the parent of Yango signed a debt relief agreement with a State-backed bad loan company, as the government steps up efforts to aid the country’s real estate sector.

China last month vowed to increase support to private developers and ensure buyers can take delivery of their homes.

The Shenzhen-listed shares in Yango jumped by their daily limit of 10%, while Shanghai-listed Greenland closed the day up 2.28%.

Greenland said  yesterday that a subsidiary plans to borrow a combined 3 billion yuan from two State-owned shareholders. The two-year loans, with an annual interest rate of 6%, would help maintain ample liquidity, and help the company’s efforts to sure the smooth handing over of homes, it said.

China Huarong Asset Management, a major bad loan company, said in a statement that it has recently signed a framework agreement with Yanggo Longking Group to restructure its debt. Yanggo Longking is the parent of cash-strapped developer Yango Group.

The move is a concrete step by the government to defuse risks in the real estate market and reinvigorate Yango, Huarong said.                            (SD-Agencies)