China Raises Pressure on Banks to Help Struggling Developers
- Property development lending weakened despite regulatory calls
- Trend intensifies real estate downturn, hurts credit expansion
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Chinese banks are facing growing pressure to support cash-strapped developers after months of pleas by regulators failed to boost lending to the industry.
Local branches at the People’s Bank of China have called for meetings with banks in multiple cities since last week to assess why loans have slowed, along with the difficulties faced by banks and how regulators can help, according to people with knowledge of the matter. The move represents increasing concern from officials following repeated so-called window guidance for faster property lending in previous months, the people said, asking not to be identified discussing private information.