China Extends Policy to Take Pressure off Ailing Property Market

China has extended a policy released last year to allow developers to postpone or swap their loans in an effort to shore up the country’s ailing real estate sector.

The policy was first released in November 2022 and includes 16 measures that aim to encourage financial institutions to set “reasonable” down payment ratios and interest rates to support demand for mortgages and allow a postponement of loan repayments to help builders complete construction projects.