HONG KONG/BEIJING -China’s central banks met with banks to discuss disposing of non-performing assets. This was in response to regulators trying to stabilize the industry that has suffered from defaults.

Two sources confirmed that the meeting was attended by a dozen cash-strapped firms including Kaisa Group and China Evergrande Group.

Sources said that the People’s Bank of China encouraged banks to extend loans to developers and offer loans for new loans at the meeting.

The sources said five companies involved in national asset management were also present.

China Securities Journal was the first to report the meeting. It stated that Zhongliang Holdings as well Yango Group were the participants.

Kaisa did not respond to requests for comment. Yango, Evergrande Zhongliang, Zhongliang, and PBOC did not respond.

Beijing said that more government support would be provided for the sector in trouble after Evergrande and other developers of property triggered global markets.

Developers claim that China’s promises to support the industry did not improve prospects. They struggled to get funding, and there are many local authorities unwilling to relax development regulations.

The meeting was attended by two developers, who said Monday that their outlook on bank financing prospects is not good.