China’s Banks Approve $196 Billion in Loans to Support New Home Delivery

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A total of 5,391 projects have been selected by local authorities for a whitelist to access this support

Chinese banks have committed 1.4 trillion yuan ($196 billion) in loans to support more than 5,000 real estate projects that qualify for a financing support program aimed at reviving the struggling housing sector.

The funding was approved under a financing coordination mechanism launched in January, designed to ensure viable projects can secure the finance needed to complete construction and deliver new homes to their owners.

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Chinese banks committed 1.4 trillion yuan ($196 billion) to over 5,000 real estate projects.
A coordinated financing mechanism, launched in January, helps secure needed funds for completing housing projects.
By May 16, 935 billion yuan in loans were approved for whitelisted projects, with ongoing efforts to include more eligible projects.

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What Happened When

January 2024：: The NFRA and the MHURD established a coordinated financing mechanism for the property sector.

From January 2024 to July 2024：: Commercial banks issued 3.1 trillion yuan in new personal housing loans and the outstanding loan to property development increased by more than 400 billion yuan.

April 2024：: The NFRA, MHURD, and the central bank set up a task group to push forward the policy.

By May 16, 2024：: Commercial banks had approved 935 billion yuan in loans to whitelisted projects.

Wednesday, August 21, 2024：: Liao Yuanyuan, a senior official at the NFRA, provided an update on the financing support program.

AI generated, for reference only

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