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China top financial regulators have extended the financial support measures for qualified real estate developers, introduced in November 2020, through the end of 2024, in a bid to guide more financial support to the struggling sector and ensure deliveries of homes.
In a joint announcement, the People’s Bank of China (PBC), the country’s central bank, and the National Administration of Financial Regulation (NAFR) said that the expiration date of relevant policy measures announced in November 2020 will be extended, while other policy measures that do not have an expiration date will be in effect in the long term.
That involves two measures and the firs encourages financial institutions to negotiate with real estate firms and actively provide support through extension of existing loans and adjustment of repayment arrangements to ensure the completion and delivery of projects, the regulators said.
The second policy measure encourages commercial banks to provide accompanying capital for special loans for projects. Specifically, such loans from commercial banks made before December 31, 2024 will not be downgraded, the officials said.Â
Both are part of the 16-measure policy support package announced in November 2022, which also includes support for embattled property firms and the rental market. The measures have played a positive role in maintaining reasonable and appropriate real estate financing and helping developers tackle risks, the officials noted.
The decision to extend the policy measures was made on the consideration of the current real estate market situation and to guide financial institutions to continue to extend financing for real estate companies and increase financial support for guaranteed delivery of buildings.