Chinese Official Urges Strong Support for Real Estate Sector, Cautions Against Blind Loan Withdrawals

A senior Chinese financial regulatory official urged the country's financial institutions to provide strong support to the real estate sector. Xiao Yuanqi of China's National Financial Regulatory Administration said they should not "blindly withdraw" loans for projects facing difficulties. He said they should provide greater support through extending existing loans, adjusting repayment arrangements, and adding new loans. Xiao cautioned the new funding guidelines are targeted and banks will issue property loans based on controllable risks and commercial sustainability.