China’s housing ministry reported that under a special mechanism designed to infuse cash into the crisis-hit real estate sector, 29.4 billion yuan ($17.20 billion) in development loans have been granted.

City governments collaborate with financial institutions to meet project demands and promote residential projects to banks that are acceptable for financial support under China’s “whitelist” method, which was inaugurated on January 26.

Beijing’s efforts to stabilise the property sector’s debt issue and restore confidence in an industry that contributes 25% of China’s GDP are centred around this approach.

As per the Tuesday evening release from the Ministry of Housing and Urban-Rural Development, 214 cities nationwide have established the system and have suggested over 5,300 projects to banks. It further stated that out of this sum, loans of 29.4 billion yuan have been given for 162 projects spread over 52 cities.

According to the ministry, banks who refuse to lend money to any of the “whitelist” projects have to give the financial regulators an explanation for their choice.

By Wednesday midday, the Hang Seng Mainland Properties Index (.HSMPI), opened a new tab, had increased by 4%, while the overall market (.HSI), opened a new tab, had gained by 3%.

China wants to increase the amount of money it spends on residential projects, but banks’ reluctance to lend to this industry might be a big barrier for struggling developers who are most in need of cash.

Developers and experts have stated that these loans are solely intended to guarantee the completion of certain projects; they are not intended to be used for debt repayment or to help reestablish financial stability.

Furthermore, according to Chinese Foreign Minister Wang Yi, China expects France will keep playing a positive role in fostering mutual trust and interest integration in the development of strong and stable Sino-European relations.

According to a statement released by the foreign ministry on Wednesday, the minister stated China aspires to collaborate as a stabilising factor in the globe during their meeting with French President Emmanuel Macron on Tuesday.

“We are willing to work with France to uphold our original aspirations, maintain focus, deepen cooperation,” Wang stated.

Wang added that China hopes France will provide “positive, stable and long-term expectations” as well as a fair and reasonable economic environment for Chinese enterprises operating there.