Property disaster: China’s banking regulator extends loans as mortgage boycott grows

The China Banking and Insurance Regulatory Commission (CBIRC) reiterated Thursday that it will provide “active credit support” for property developers, so they can complete delayed or stalled projects as soon as possible.

It also urged banks to issue more mortgage loans to qualified homebuyers to support demand and prop up the property market.

Mortgages have increased after the People’s Bank of China cut mortgage rates by two-tenths of a percentage point in May for first-home buyers. Substantially all — 90% — of mortgage loans have been issued to first-home buyers.

“The current lending pace for property-related loans has reached the fastest pace since 2019,” said Liu Zhongrui, an official from the CBIRC, at a press conference on Thursday in Beijing.

Last month, new developer loans issued by banks also reached 52.2 billion yuan ($7.7 billion), Liu added.

The pledge is the latest among a series of moves by Chinese authorities to appease a homebuyer revolt nationwide. A growing…

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