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Three red lines

China financial regulatory guidelines introduced in August 2020 relating to the ratio of debt to cash, equity, and assets

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Three red lines

China financial regulatory guidelines introduced in August 2020 relating to the ratio of debt to cash, equity, and assets

The three red lines (Simplified Chinese: 三条红线, Traditional Chinese: 三條紅線, Pinyin: sān tiáo hóng xiàn) are financial regulatory guidelines in the People's Republic of China introduced in August 2020 relating to the ratio of debt to cash, equity, and assets. It was introduced to help rein in the highly indebted property-development sector in China, seen especially in large real estate concerns such as Evergrande, which faced a liquidity crisis in Q4 2021.

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From Wikipedia

The three red lines (Simplified Chinese: 三条红线, Traditional Chinese: 三條紅線, Pinyin: sān tiáo hóng xiàn) are financial regulatory guidelines in the People's Republic of China introduced in August 2020 relating to the ratio of debt to cash, equity, and assets. It was introduced to help rein in the highly indebted property-development sector in China, seen especially in large real estate concerns such as Evergrande, which faced a liquidity crisis in Q4 2021.

Text: Wikipédia, CC BY-SA 4.0. ·

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