China Pledges to Boost Developer Lending to Tackle Home Sales Slump

  • Country asks local government to offer more targeted support
  • Prolonged slump in the property market is weighing on economy

Apartment buildings in Xinzheng City, China.

Photographer: Pedro Pardo/AFP/Getty Images
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China asked local governments to better support developers’ financing needs, including drafting a list of projects eligible for funding, as the country seeks to arrest the prolonged downturn in its housing market.

In a joint notice sent by the Ministry of Housing and Urban-Rural Development and National Administration of Financial Regulation on Friday, regulators asked local governments to co-ordinate and offer more targeted support for the reasonable financing needs of developers.