China Ping An Bank names 41 property firms in funding support list

Chinese lender Ping An Bank has put 41 firms on a list of developers eligible for its funding support, marking the latest move aimed at reviving the nation’s crisis-hit property sector, Bloomberg News reported on Tuesday.

Ping An Bank decided to adjust criteria related to extending credit lines in order to meet builders’ reasonable funding demand, a task set out in a major annual government economic conference last month, the report said, adding that these changes involve areas including risk assessment and approval procedures.

The report, which cited people familiar with the matter, said builders Ping An Bank named in the list include state-backed and private sector companies, including Longfor Group Holdings Ltd and China Vanke Co, adding that the Chinese lender distributed the list to its departments and branches earlier this month. It said other lenders may follow Ping An Bank’s example.

Ping An Bank, a unit of Ping An Insurance (Group) Co of China Ltd, Longfor Group and China Vanke did not immediately respond to Reuters requests for comment.

China’s property sector has been grappling with a liquidity crisis since mid-2021, with major developers defaulting on or delaying debt payments as they struggle to sell apartments and raise funds, weighing on the growth of the world’s second-biggest economy.

Last week, the country’s housing ministry and financial regulator asked local governments to better coordinate with financial institutions to provide financing support to real estate projects in an effort to support the ailing housing sector.

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The article was originally published in Inquirer.Net.