The three red lines (Chinese: 三條紅線, Simplified: 三条红线, Pinyin: sān tiáo hóng xiàn) are financial regulatory guidelines in China introduced in August 2020 relating to the ratio of debt to cash, equity and assets.[1] 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.[2]
- ^ "What China's Three Red Lines Mean for Property Firms". BloombergQuint. 8 October 2020. Retrieved 2021-12-13.
- ^ Cheng, Evelyn (2021-10-19). "How Evergrande found itself on the wrong side of China's regulators". CNBC. Retrieved 2021-12-13.