(Yicai Global) Nov. 25 -- Six large Chinese state-owned banks have promised CNY1.3 trillion (USD181.4 billion) in loans to 17 real estate developers in the last two days after the country’s financial regulators called for increased financial support to the flagging property sector.

Industrial and Commercial Bank of China was the biggest lender at CNY655 billion (USD91.5 billion), supporting 12 developers. Postal Savings Bank of China followed with CNY280 billion, Bank of China CNY220 billion and Bank of Communications CNY120 billion, according to the contracts seen by Yicai Global.

China Construction Bank is helping the second-largest number of developers at eight. Both China Construction Bank and Agricultural Bank of China did not disclose the exact amount of credit extended.

The move comes on the heels of a symposium held by the country’s financial regulators earlier this week where the People’s Bank of China said it is mulling offering CNY200 billion (USD28 billion) in interest-free loans to banks to hike lending to the property sector, stabilize real estate investment, support personal mortgages as well as promote the use of private bond financing instruments in order to lay a better foundation for macroeconomic recovery.

The financing, which is being made available to banks by March 31 next year, will be mainly used to support housing projects at risk of not being finished on time to ensure the punctual delivery of pre-sold homes, the PBOC and the China Banking and Insurance Regulatory Commission said at the symposium on financial support measures to stabilize the economy held on Nov. 21.

The monies are being offered to both state-owned and private developers. Private firm China Vanke has already signed deals with all six banks and obtained over CNY200 billion (USD28 billion) from Bank of China and Bank of Communications while Longfor Properties has tie-ups with five of the banks.

The Postal Savings Bank of China has said it will lend support to a second batch of real estate firms to meet their reasonable financing needs. And Bank of China has said it will soon announce its third batch.

Next, the China Banking and Insurance Regulatory Commission will strengthen communication with government departments and urge banks and insurance firms to maintain stable financing to property developers so as to boost the healthy development of the sector, a member of the commission told Yicai Global yesterday.

Editor: Kim Taylor