China's financial institutions should provide strong support to the country's beleaguered real estate sector and not "blindly withdraw" financing for projects facing difficulties, according to a senior Chinese financial regulatory official.
His strongly worded comments follow the Chinese central bank's largest cut in mandatory cash reserves for banks since 2021.
"The financial industry has an unshirkable responsibility and must provide strong support," said Xiao Yuanqi, deputy director of China's National Financial Regulatory Administration, at a press conference in Beijing on Thursday, according to a CNBC translation.
"We all know the real estate industry chain is long and involves a wide range of areas.
China's real estate troubles are closely intertwined with local government finances since they typically relied on land sales to developers for a significant portion of revenue.
Persons:
Xiao Yuanqi
Organizations:
China's, Financial Regulatory Administration, CNBC
Locations:
Beijing