CHINA will take steps soon to boost financing for good quality property developers, including adjusting borrowing curbs on them, Xinhua said Friday.

Reporting the latest move to ease a liquidity crunch that has plagued the real estate sector since mid-2020, Xinhua said financial regulators have drafted a 21-task plan to guide quality developers’ balance sheets back to a safe range.

China’s property sector accounts for a quarter of the country’s economy.

The plan mainly targets relatively large property firms that are systemically important, Xinhua said, adding that financial institutions will be able to use their own discretion.

Media reported last week regulators had initially added seven privately owned developers on a “white list” to receive liquidity supports, but Xinhua said Friday there was no such list.

The report said regulators will improve the “three red lines” policy, introduced in August 2020 to tackle property developers’ unbridled borrowing. The policy has squeezed the sector’s high leverage, restricting how much developers can borrow in new funding each year by capping their debt ratios.

Regulators will keep the overall framework for 30 pilot property firms, adjusting some of its parameters, Xinhua said, without giving details or naming firms. (SD-Agencies)