Central Bank Plans New Lending Tool to Support Embattled Developers

What’s new: China’s central bank is developing a new policy tool to encourage commercial banks to extend loans to developers struggling with stalled construction, People’s Bank of China Governor Yi Gang said Monday at a forum.

The central bank plans to provide 200 billion yuan ($28 billion) of new loan quotas at zero cost for commercial banks to lend to cash-strapped developers that missed delivery schedules for residential projects, people familiar with the matter told Caixin.