China relaxes 'red lines' on property sector borrowing in policy pivot

Beijing rolls out support for healthy developers to lift critical industry

20230113N china condo construction REU

Unfinished apartment buildings in Guilin in September 2022. Headwinds in the real estate industry have had a widespread economic and financial impact in China. © Reuters

NORIYUKI DOI, Nikkei staff writer

SHANGHAI -- China will ease its "three red lines" policy restricting borrowing by property developers, a central bank official said Friday, as part of a plan to help the embattled industry.

Zou Lan, head of the monetary policy department at the People's Bank of China, said the change will apply to 30 well-performing developers with a certain "systemic importance" in terms of scale, area of operations and other factors.

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