China will implement prudent financing system for property firms, regulator says

CHINA’S banking regulator will further implement a prudent financial management system for property firms and would look to effectively meet any reasonable financing demands they have, it said on Friday (Aug 19) in a statement sent to Reuters.

The China Banking and Insurance Regulatory Commission (CBIRC) made the comment in response to queries on a Reuters report on Thursday that said the regulator is scrutinising the property loan portfolios of some local and foreign lenders to assess systemic risks.

China’s policymakers have been trying to stabilise the property sector, which accounts for a quarter of the economy, after a string of defaults among developers on their bond repayments and a slump in home sales, which threaten further economic turbulence.

Beijing is trying to encourage banks to extend fresh loans to embattled developers, while managing lending risks.

In its statement, the CBIRC said it is actively coordinating with other government departments to promote efforts to guarantee that property projects will be delivered and to safeguard people’s livelihoods.

The regulator will also look to encourage the healthy development of the real estate industry, it said. REUTERS