China steps up 'whitelist' mechanism for property sector - media

hl.co.uk:

We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Newsroom

Newsroom articles are published by leading news agencies. Hargreaves Lansdown is not responsible for an article's content and its accuracy. We may not share the views of the author.

HL Podcast

HL Insight

Five state-owned Chinese banks have been matched with more than 8,200 residential projects for development loans under the 'whitelist' mechanism aimed at injecting liquidity into the crisis-hit sector, government-backed media The Paper reported.

Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Published by

16 Feb 2024

The high number of projects already approved for possible support highlights the government's efforts to free up funding for the debt-riddled industry, although it is unclear how many will secure loans.

«The progress for whitelist projects is faster than expected and it looks like regulators have put much higher pressure on banks to lend to developers this time,» said Raymond Cheng, head of China research at CGS International.

Under the «project whitelist» mechanism launched on Jan. 26, city governments are recommending to banks residential projects suitable for financial support, and are coordinating with financial institutions to meet projects' needs.

The mechanism is a key plank of Beijing's efforts to stabilise the sector's debt crisis and boost confidence in an industry that accounts for a quarter of