Chinese Banks Told To Relax Loans For Developers, Buyers: Newspaper

Many banks in south China, east China and southwest China received verbal guidance from PBOC branches to ease real estate loan quotas from last week, the Economic Observer reported. But the guidance is seen as moderately fine-tuning as tougher regulations have led to weakening home sales, financing difficulties and debt repayment pressures for developers, the newspaper said citing Xie Yunliang, chief macro analyst at Minsheng Securities. In the future, the proportion of financial resources invested in the real estate sector will decrease accordingly, with more being invested in manufacturing, supporting technological innovation, and rural revitalization, the newspaper said.