China extends real estate support policies

China has extended two support measures for the real estate industry to support the healthy development of the sector, according to a joint statement by the People's Bank of China — the central bank — and the National Financial Regulatory Administration on Monday.

Last November, Chinese authorities rolled out a raft of 16 measures to step up financing support to real estate developers facing significant liquidity pressure amid a market downturn, among which two were time-limited. A circular issued on Monday announced their extension.

Financial institutions and real estate companies are encouraged to negotiate independently based on commercial principles and under the premise of ensuring the security of creditor's rights, and to decide on extensions and repayment adjustments of existing loans to promote financing and completion of the projects involved.

Loans due before December 31, 2024 may be allowed to extend for one year beyond the original deadlines, while the loan classification can stay the same.

Commercial banks are allowed to not downgrade financing provided to special projects in accordance with the measures issued last November during the loan period.