70 Chinese regulators are urging banks to accelerate the approval process for new loans to cash-strapped private property developers, according to individuals familiar with the matter. This initiative aims to stimulate homebuyer sentiment amid a prolonged decline in new home prices, which have dropped for eight consecutive months. Using the “whitelist” mechanism, Beijing seeks to alleviate the unprecedented liquidity constraints in the real estate sector and encourage home purchases. Despite these efforts, most major domestic banks have been hesitant to significantly increase credit exposure to the crisis-ridden industry, despite repeated directives from Beijing. The property sector in China, the world’s second-largest economy, has faced a series of challenges since 2021, following regulatory crackdowns on developers’ excessive leverage, leading to a liquidity crunch. The National Financial Regulatory Administration (NFRA), the banking regulator, did not respond to Reuters’ request for comment. Developers and banking sources note that banks have been hesitant to extend new loans to property projects, instead focusing on extending the maturity and reducing interest rates on existing loans. The “whitelist” program encompasses projects from both state-backed and private developers, requiring fresh financing totaling 1.5 trillion yuan ($207.51 billion), as per one source. The regulator has set a deadline for banks to complete the approval and issuance of all loans by the end of June, according to another source. You Might Be Interested In India to Postpone Caps on UPI Payments Market Share Once Again Robert Half Report Highlights Tech Skills Gap Amid Talent Shortage Lincoln Financial Group’s Insights on Investor Concerns EFCC Indicts Banks, Alleging Connection to 70% of Financial Crimes in Nigeria Amazon Poised for 40% Rally After Impressive Q4 Earnings Greek Banks Set for Dividend Return After 16-Year Hiatus