China Tells Banks to Provide $85 Billion in Property Funding
- Big lenders told to ramp up financing for the rest of the year
- Latest move to arrest housing slowdown that’s hurting economy
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China’s financial regulators told the nation’s biggest state-owned banks to extend at least 600 billion yuan ($85 billion) of net financing to the embattled property sector in the final four months of this year, according to people familiar with the matter, in their latest attempt to address a deepening liquidity crisis.
The People’s Bank of China and the China Banking and Insurance Regulatory Commission recently told the six largest banks including Industrial & Commercial Bank of China Ltd. and China Construction Bank Corp. to each offer at least 100 billion yuan of financing support in any form including mortgages, loans to developers and purchases of their bonds, said the people, asking not to be identified discussing a private matter.