The China Banking and Insurance Regulatory Commission (CBIRC) reiterated Thursday that it will provide “active credit support” for property developers, so they can complete delayed or stalled projects as soon as possible.
It also urged banks to issue more mortgage loans to qualified homebuyers to support demand and prop up the property market.
“The current lending pace for property-related loans has reached the fastest pace since 2019,” said Liu Zhongrui, an official from the CBIRC, at a press conference on Thursday in Beijing.
Last month, new developer loans issued by banks also reached 52.2 billion yuan ($7.7 billion), Liu added.
The movement is a sign of how a liquidity crunch facing developers is spilling over to other aspects of the society.
Earlier this week, the central Chinese city of Zhengzhou set up a property developer bailout fund to address unfinished projects, one of the first bailout measures by local governments to tackle the mortgage boycott.
Both companies are backed by local governments in the province.
The fund will be used to “revive problematic property projects and bail out struggling developers,” the statement said, without disclosing how big the fund would be.