C
hina plans to expand its "whitelist" program, which allows city governments to recommend residential projects for speedier lending, and increase bank loans for these developments to 4 trillion yuan ($561.8 billion) by the end of 2024. The country's housing ministry announced this plan at a press conference, where officials from the central bank, finance ministry, and National Financial Regulatory Administration were also present.

    The "whitelist" initiative, launched in January, aims to ensure the completion of unfinished housing projects so they can be delivered to buyers. Now, all commercial housing projects are eligible for the program, according to Xiao Yuanqi, vice minister of the administration. This move is expected to broaden the list and allow banks to deploy funds "as soon as possible."

    The briefing was part of a series of high-level government policy announcements aimed at bolstering the economy. Recent measures include a 50 basis-point cut to the reserve requirement ratio and a reduction in minimum down payments for second-home loans.

    Some investors saw this flurry of activity as a sign that Beijing is ready to take drastic measures to stimulate growth, but the Chinese CSI 300 real estate index dropped over 5% during the briefing. However, property stocks soared on Monday after officials announced additional measures, including allowing local governments to issue more special bonds for land purchases and using affordable housing subsidies for existing inventory.

    More than 50 cities across China have introduced policies to boost the real estate market, with some cities removing restrictions on home purchases or easing down-payment ratios. The city of Guangzhou has removed all restrictions ahead of the Golden Week holiday, while Beijing, Shanghai, and Shenzhen have eased homebuying restrictions for non-local buyers.

    The real estate sector has been in a downturn since 2021, when Beijing launched a crackdown on high debt levels, leading to defaults and unfinished housing projects. This had severely dampened homebuyer confidence in the market.