Chinese real estate companies saw a significant increase in financing in December, raising a total of 101.8 billion yuan ($14.9 billion). This marks a 33.4% year-on-year increase, according to market researcher CRIC.
The central bank recently announced that in cities where new home selling prices have fallen month-on-month and year-on-year for three consecutive months, mortgage rates could be lowered or abolished for first-time home buyers in phases. Additionally, China plans to relax restrictions on borrowing for property developers by modifying the "three red lines" policy.
In the latter half of 2020, Chinese regulators implemented a series of measures to bolster liquidity in the real estate sector. This included major state-owned banks pledging at least $162 billion in fresh credit to ease a cash crunch in the industry. The property sector, which makes up a quarter of China's economy, was heavily impacted last year due to the COVID-19 pandemic resulting in construction and mortgage issues.
