Some Chinese state-owned firms told regulators to consider adjusting 'three red lines' lending restrictions to property developers for Mergers & Acquisitions, the local media outlet Cailianshe reported, citing sources familiar with the matter.

No further details are available on the same, thus far.

This comes ahead of the Chinese troubled Evergrande property development giant’s $148 million in coupons payment due later on Wednesday.

Separately, another China’s property developer Fantasia said that some lenders are requesting early repayments after it reopened for trading earlier this morning.

Market reaction

The risk sentiment is seeing a bit of a recovery on the above headlines, with the S&P 500 futures now losing only 0.20% vs. -0.40% seen previously. Meanwhile, AUD/USD has bounced off just above the 0.7350 level, currently trading at 0.7366.