The China Banking and Insurance Regulatory Commission (CBIRC) comments came after a growing number of homebuyers across China threatened to stop making mortgage payments on stalled real estate projects, adding to the housing crisis already hitting the economy.
Investors have continued to sell off Chinese bank stocks and developer stocks and bonds, even after the CBIRC vowed on Thursday to increase its coordination with other regulators to “guarantee the delivery of houses.”
In an interview with the official China Banking and Insurance New on Sunday, the CBIRC reiterated that it will support local governments in promoting home delivery, expressing confidence that with joint efforts, “all difficulties and problems will be adequately resolved.”
Specifically, the regulator called on banks to “take social responsibility” and actively participate in devising plans to close the funding gap so that construction of stalled real estate projects can quickly resume and homes can be handed over to buyers early .
She also called on the banks to increase communication with mortgage customers and support the acquisition of real estate projects to help stabilize the real estate market.
In addition, the regulator said financial risks in northeastern Liaoning province have increased recently but are under control, and the government will take measures to prevent risks from China’s small lenders.
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