This is an audio transcript of The Daily Edit podcast episode: Countryside demand dips countrywide 

Roopsha Dasguupta  

This is the Daily Edit from the economic times. It's July 25. And we put the focus on how reality is biting into China's reality sector.

China is funneling more credit to its beleaguered housing industry, after buyers protested by withholding mortgage payments on delayed projects. The real estate crisis is a result of tighter borrowing requirements for housing developers. After Evergrande China's most indebted builder faced a series of defaults. The credit squeeze designed to bring down debt levels in the property market, which contributes about 30% of China's GDP. And to team run away housing prices has exposed nearly a fifth of its developers to debt default, Beijing's zero COVID policy has stalled construction in a year, in which property companies face $88 billion in bond payments. A homebuyer revolt, if it spreads can proliferate the crisis into the broader economy through bad loans for banks. The China banking and insurance Regulatory Commission has said it will extend credit support to developers to finish projects. It has also asked banks to lend more to qualified homebuyers. The People's Bank of China has reduced mortgage rates for first homebuyers are the measures could include state owned developers taking over and completing stalled projects. A moratorium on mortgage payments so that homebuyers do not solely their credit scores accelerated issuance of local government bonds to shore up the capital of small banks and local governments setting up property bailout funds. Chinese regulators are improving coordination to ensure delivery of houses on time. A collapsing housing market in China could affect debt flows to developing countries dependent on project finance through the Belt and Road Initiative. This would come at a time indebtedness has risen overall in large measure due to a surge in Chinese development lending at rates significantly higher than those charged by the World Bank, etc. Beijing is signaling it has the will the tools and the money to set its housing market in order financial markets in turmoil over interest rate tightening in the West will withdraw comfort from Chinese intervention to suit its property market. You have been listening to Roopsha Dasguupta, tune into et play Economic Times latest platform for all audio content.

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