"China's New Property Financing Measures Face Cautious Banking Test"

China is set to implement a "project whitelist" mechanism to expedite issuance of project loans from banks for residential projects in 35 cities, aiming to ease a liquidity squeeze in the real estate sector. However, banks' reluctance to extend fresh credit to struggling real estate firms due to concerns about asset quality and the impact of the debt crisis remains a major obstacle. The mechanism may prioritize state-owned enterprises' projects, while privately owned developers are also seeking financing support. The success of the latest financing support measure is uncertain, and some industry experts believe that more comprehensive stimulus policies are needed to restore confidence in the property sector.