China’s ¥5.6 Trillion Real Estate Support Has Yet to Deliver. Here’s Why. – The Diplomat

China’s real estate sector, once a key driver of economic growth, has become a drag on the economy since 2021, prompting Beijing to reverse stringent policies and introduce the real estate “whitelist” program to boost financing for viable projects. Despite approving $780 billion in loans since 2024, housing completions fell by 27.4% and developer financing declined by 17%, mainly benefiting state-owned developers while struggling private firms face difficulties securing funding, leading to a lack of tangible financial relief and highlighting the need for refinements and risk-sharing mechanisms to improve the program’s effectiveness.

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