The Shanghai branch of the Industrial and Commercial Bank of China will provide CNY240 billion (USD35 billion) in intentional financing to 16 property developers in the city to support the healthy development of the real estate market, online news outlet The Paper reported yesterday.
Longfor Properties, China Merchants Shekou, Poly Developments & Holdings and OCT are among the developers that will receive financing in the form of development loans, mortgage packages, letters of guarantees, loans for mergers and acquisitions and other integrated financial services, according to the strategic cooperation agreements signed with ICBC yesterday.
ICBC will continue to help developers to stabilize and improve their operations and to support the healthy development of the real estate market under the guidance of regulatory authorities, the Shanghai branch said.
China’s real estate policies have shifted recently from the previous curbs to stem speculation to offering more support as the market cools. Last month the People’s Bank of China requested banks to provide more support for the restructuring of the property sector, to assist in the prevention and resolution of risks among leading developers and to improve the liabilities of big real estate firms.