BANK of Communications Co. (BoCom) said yesterday it would provide a 100 billion yuan (US$13.98 billion) credit line to developer China Vanke Co. in the latest sign of support for the property sector.

Authorities have announced a flurry of fiscal measures recently to ease pressure on developers and reverse a housing slump. The property sector makes up about a quarter of the economy.

Shenzhen-based Vanke is the country’s second-largest developer by sales.

Under the agreement, BoCom will likely offer Vanke property development loans, mortgage loans and loans for merger and acquisition deals, according to a statement released by the lender.

The lender will also provide funds to the developer via letters of guarantee and bond investment, it said.

The agreement is part of the bank’s efforts to implement 16 measures outlined by regulators to support the property sector, it said in the statement.

“BoCom will continue to fulfill the responsibility of a State-owned bank, [and] accurately promote high-quality economic development with high-quality financial services,” it said.

The bank also agreed to provide a 20 billion yuan line of credit to Midea Real Estate Holding Ltd., according to a separate statement it released yesterday.

The government has introduced a number of relief measures, such as tax reliefs and mortgage rate cuts, in a bid to stabilize the property sector, once a pillar of growth.

In the latest policy move, the central bank will provide 200 billion yuan in loans to six commercial banks for housing completions, according to a deputy central bank official quoted by the Economic Daily on Monday.

These policies are gradually paying off, boosting home sales. Data from the Ministry of Housing and Urban-Rural Development show that the turnover of new homes in many cities rose more than 10% month on month in October in terms of area.

The sales volume of pre-owned homes in 50 cities monitored by the Beike Research Institute expanded in October, up both from September and a year ago, pointing to warming demand.

Still, analysts warn of the unstable recovery of the property market, as well as residents’ cautious attitude toward home purchases, affected by recent COVID-19 outbreaks.

Upholding the idea that “housing is for living in, not for speculation,” China has repeatedly underlined the importance of supporting people’s essential housing needs and their need for better housing. (SD-Agencies)