SHANGHAI (Reuters – China’s highest real estate regulator has pledged that it will resolutely deal with risks stemming out of the delayed delivery by some top developers residential properties. This is in a bid for social stability, according to the official Xinhua News Agency.

Xinhua was also informed by Wang Menghui (head of the Ministry of Housing and Urban-Rural Development), that China would continue to maintain its consistent and stable real estate policy, and will strengthen coordination in areas such as finance and land supervision.

Chinese developers experienced liquidity stress as Beijing intensified its campaign to deleverage the sector. This led to defaults at highly-indebted companies like China Evergrande Group.

Wang rejected any possibility of a reversal in policy, even though Chinese regulators may have slightly relaxed funding restrictions in order to prevent a sector-wide hand-landing.

China is not going to use the property industry to boost the economy’s short-term growth. Instead, it will be continuing to crackdown on speculative investing, Xinhua said, citing Wang.

China, however, will establish a mechanism for long-term real estate development that maintains stability in the market and prices of land and properties.

Wang stated that the core fundamentals of China’s real estate market are unchanged. Home-buying is still strong despite the rapid pace of urbanisation and rising living standards due to the coronavirus outbreak.

China’s central bank stated that on Saturday it would safeguard home buyer’s legal rights and help them meet their living standards. They also pledged to encourage healthy development in the country’s real-estate market.