China’s banking regulator called on the nation’s local lenders to support developers to complete unfinished housing projects, marking a potential turnaround for the property crisis.
Banks must work with local authorities to provide liquidity for the completion and handover of contracted property sales, according to a report run by the China Banking and Insurance Regulatory Commission (CBIRC) on media firm «China Banking and Insurance News».
With the vast majority of China’s most heavily indebted developers missing completion and handover deadlines for various housing projects, an increasing number of buyers throughout the country are refusing to make mortgage payments for stalled projects in response. This reportedly resulted in an emergency meeting between major banks, financial regulators and the housing authority.
According to research firm China Real Estate Information Corp, homebuyers stopped making mortgage payments on at least 100 projects in more than 50 cities, as of last week.
