BEIJING (Reuters) – China’s banking sector issued 2.64 trillion yuan ($369 billion) in property development loans and 4.84 trillion yuan in mortgage loans from January to October, China’s banking regulator said on Thursday, amid efforts to support the sector.
Special housing completion funds have been made available for projects, an official at the China Banking and Insurance Regulatory Commission (CBIRC) told the media, adding that financial support policies will be put in place to ensure property financing runs smoothly and orderly. .
The banking regulator will also guide banks to provide credit issuance to the real estate sector, he said.
Six of China’s biggest lenders have agreed to provide at least $130 billion in new credit to property developers, adding to recent regulatory support measures to ease a suffocating cash crunch in the sector.
The CBIRC will also require the country’s 12 national joint-stock banks to treat state-owned and private real estate enterprises equally, supporting the sector through methods such as loan extensions, the official said.
The banks should definitely avoid taking credit from developers and are encouraged to improve the efficiency of loan approvals, it said.
As of the end of September, banks’ outstanding loans to project development stood at 12.16 trillion yuan ($1.91 trillion), up 0.02% from a year earlier, according to central bank data.
($1 = 7.1372 Chinese yuan renminbi)
(Reporting by Liangping Gao, Ziyi Tang and Ryan Woo; Editing by Raissa Kasolowsky and Elaine Hardcastle)