Headquarters of the People's Bank of China, China's central bank, in Beijing in October 2018 Photo: IC

 
China's central bank and the banking regulator have emphasized the importance of a prudent real estate finance management system to achieve the goal of stabilizing home prices amid a debt crisis that overshadows one of the country’s largest property developers.
 
At a meeting held on Wednesday with executives from 24 major banks across the country, regulators said that the prudent real estate financing management system has played an active role in serving the real economy, boosting economic transformation and the stable and sound development of the real estate industry on the principle that "houses are for living in, not for speculation."
 
The meeting took place as Chinese property giant Evergrande Group faces major debt problems. The company’s wealth management unit is reportedly being probed by the Shenzhen government.
 
Regulators urged financial institutions to cooperate with competent authorities and local governments in a legal and market-oriented manner to ensure the sound and stable development of the housing market and ensure consumer rights are fully protected.  
 
The meeting also called for continued efforts to implement a long-term mechanism in stabilizing the real estate sector and speed up financial policies for home rental.
 
Yi Gang, governor of the People's Bank of China, the country's central bank, presided over the meeting.