China Curbs Loan Structure Widely Used by Distressed Developers

China Curbs Loan Structure Widely Used by Distressed Developers China is restricting real estate companies from using a popular offshore loan structure that has helped some of them weather the country’s property crisis, according to people familiar with the matter, adding to recent moves to strengthen oversight of overseas borrowing. The National Development and Reform Commission, which oversees Chinese companies’ foreign debt, has told some bankers in recent months that it would no longer allow a refinancing structure known as 1+N for local real estate firms or cross-border borrowers using property in the mainland as collateral, said the people, who asked not to be identified discussing private matters.