China’s regulators told the country’s biggest banks and asset managers to meet all “reasonable” funding needs from property firms, in the government’s latest bid to arrest the protracted slump in the real estate market.

In a meeting on Friday (Nov 17), the People’s Bank of China, the National Administration of Financial Regulation and the China Securities Regulatory Commission told financial institutions to support property developers in receiving loans, issuing bonds and ensuring reasonable equity financing from capital markets.

China’s home prices dropped the most in eight years in October. New-home prices in 70 cities, excluding state-subsidised housing, declined 0.38 per cent from September, the steepest fall since February 2015. 

The data adds to mounting evidence that Beijing’s efforts to support the housing market have had little impact so far. Stimulus measures rolled out in major cities since August haven’t stopped sales or investment contracting, and the deepening gloom around property continues to hinder China’s economic recovery from the pandemic. 

At the meeting, the regulators also encouraged mergers and acquisition activity within the real estate sector, and called for more financing support to ensure housing project delivery. The attendees including 18 unnamed commercial banks and 4 large brokerage firms. BLOOMBERG