The Bank of China Insurance Regulatory Commission (CBIRC) reiterated Thursday that it could provide real estate developers with “aggressive credit support” to complete delayed or stagnant projects as soon as possible.
We also urged banks to issue more mortgages to qualified homebuyers to support demand and support the real estate market.
“The current pace of real estate lending has reached the fastest pace since 2019,” said Liu Zhongrui, a CBIRC official, at a press conference in Beijing on Thursday.
Last month, bank-issued new developer loans also reached 52.2 billion yuan ($ 7.7 billion), Liu added.
This move shows how the liquidity crisis facing developers is spreading to other aspects of society.
Earlier this week, Zhengzhou, central China, set up the Real Estate Developer Relief Fund to address an unfinished project, one of the first local government bailouts to tackle a mortgage boycott.
Both companies are backed by the state’s local government.
The fund will be used to “revive problematic real estate projects and bail out struggling developers,” without revealing the size of the fund, the statement said.