China banks approve US$28 billion loans for property market

CHINA’S housing ministry said more than US$28 billion of bank loans have been approved for property projects, the latest indication that lenders are heeding the government’s push to support the embattled real estate market.

Commercial banks had approved that amount as of Feb 28, the ministry said on Friday (Mar 1). That’s a jump from about 29 billion yuan (S$5.42 billion) as of Feb 20. About 6,000 projects are now included on so-called white lists that make them eligible for housing support. 

Policymakers have increased pressure on banks to boost property loans through these white lists, as developers contend with a years-long debt crisis that’s making it hard to complete projects. So far that’s done little to arrest the property slump, with home sales dropping further in February. 

The value of new home sales from the 100 biggest real estate companies slid 60 per cent last month from a year earlier, following a 34.2 per cent decline in January, China Real Estate Information figures showed on Thursday.

The housing ministry on Thursday asked local governments to coordinate negotiations on residential projects rejected by lenders, and recommend to banks later when they met banks’ standards. 

“It’s the housing watchdog’s second internal meeting within 10 days to speed up implementation, underscoring regulatory urgency,” said Chen Wenjing, a researcher at property agency China Index Holdings. BLOOMBERG