Chinese authorities have asked their top banks to provide substantial financial support to the embattled property sector, aiming to push back against a worsening liquidity crisis.

Bloomberg, citing sources, reported that the People’s Bank of China and the China Banking and Insurance Regulatory Commission instructed six state-owned banks, or its largest lenders, to provide over $84 billion (600 billion yuan) in real estate funding.

These lenders have been ordered to provide financial support in mortgages, loans to real estate developers, purchase of their bonds, or other forms.

Currently, the six largest banks in China are the Bank of China, the China Construction Bank, the Industrial and Commercial Bank of China, the Agricultural Bank of China, and the Bank of Communications.

China’s real estate sector has fallen into a deep depression, putting the financial system and the overall economy at risk.

The real estate market has been distressed since developer giant China Evergrande Group defaulted on its debt in 2021. That incident was the first of many as other major property developers in China, such as Kaisa Group, Sunac China, Shimao Group, and others all followed suit.

The property market turmoil came after the Chinese regime clamped down on real estate leverage in 2020, targeting the developers relying heavily on debt for growth.

By cracking down on the developers, who were estimated to carry $5 trillion worth of debt, the communist regime hoped to restrict the debt that developers could take on to fund their projects and reduce a further build-up of financial risks in the property sector.

The crackdown caused the mainland’s real estate sector to fall into a debt crisis.

The Chinese authorities plan to provide developers with particular loans worth $29 billion (200 billion yuan) to ease their troubles.

Bloomberg reported in August that these particular loans would help Chinese developers complete their stalled housing projects and deliver them to homebuyers.

On September 29, the People’s Bank of China introduced measures for speeding up the use of special loans to ensure housing sales are completed.

The central bank also plans to guide commercial banks to support the scheme.

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