Property developers with a cash-to-short-term-debt ratio below one in China in 2020
As of November 2020, all of the Chinese property developers that had received a triple C rating from S&P Global Ratings did not have a cash-to-short-term-debt ratio below one. Having a sufficient amount of cash is part of the "Three Red Lines" regulation that aims at guaranteeing real estate companies to fulfill their current liabilities. 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.
