Chinese Regulator Asks 6 Key Banks to Provide $84 Billion in Real Estate Financing

On Friday, Sept. 30th, according to the report that communist China’s financial regulator asked its six largest banks to provide at least 600 billion yuan ($84.32 billion) in financial support to the real estate sector in response to a growing liquidity crisis, citing information from people familiar with the matter.

 The China Banking and Insurance Regulatory Commission has told the state-owned banks to help in any form, including mortgages, loans to developers, and purchases of their bonds.

 On Thursday, the communist regime’s central bank unveiled measures to accelerate the use of special loans to ensure home sales are completed. It also plans to direct commercial banks to support the program financially.

 In recent months, the communist government has introduced a series of measures to support the economy, barely averting a contraction in June. However, recovery is still not in sight due to a strict zero-Covid policy and a persistently sluggish property market.

 At present, only first-tier cities in China maintain high housing prices temporarily, and the local government has introduced a personal income tax refund plan for home purchases to save the market, showing its economy is collapsing and that disaster is imminent. Meanwhile, the introduction of various stimulation measures only lingered in a steadily worsening market condition, but the Ponzi scheme will eventually be busted.