The People's Bank of China plans to provide 200 billion yuan (HK$218.2 billion) of interest-free loans to commercial banks before March 31, 2023, in order for the banks to provide funds for presold homes.

The funds will be offered to six commercial banks, and the PBOC is consulting the lenders for the practices of the proposal to deal with the unfinished units, the state-run media Economic Daily reported, citing Pan Gongsheng, the deputy governor of China's central bank.

Pan added that the transition period for real estate loan concentration management will be extended to two years.

This followed Beijing's 16-point plan to rescue the struggling property sector last week, and more than 1 trillion yuan of fresh financing might have been injected into the industry by the central government.

With the supportive measures, S&P Global Rating expects a recovery could come in the second half of 2023.

Meanwhile, embattled mainland developers are busy dealing with their debt.

Sunac China's (1918) property arm plans to extend its 15.4 billion yuan onshore debts again, mainland media reported.

It would offer two options: to prolong the previously extended debt for another 3.75 years until September 2026, or to extend the current debt for 4.5 years until 2027.

China Evergrande (3333) proposed to delay the interest payment, due this Saturday, for 4 billion yuan onshore debt for a half year once again.

And China Aoyuan (3883) plans to package and restructure its onshore debt, which involves about 11.6 billion yuan, according to mainland media.

A16-point plan is underway to rescue the struggling property sector. Bloomberg

PBOC injects 200b yuan toward housing loans