Property rescue package points to easing of yearslong clampdown

China has unveiled its most sweeping rescue package to bail out a real estate market mired in a record slowdown and deepening liquidity crunch, according to people familiar with the matter.

The People's Bank of China and the China Banking and Insurance Regulatory Commission have jointly issued a notice to financial institutions laying out plans to ensure the "stable development" of the property sector.

The latest notice includes 16 measures, ranging from addressing the liquidity crisis faced by developers to loosening downpayment requirements for homebuyers.

Developers' outstanding bank loans and trust borrowings due within the next six months can be extended for a year, while repayment on their bonds can be negotiated.

The move is the strongest sign yet that Chinese policymakers are easing a yearslong clampdown on the property sector as they also aim to reduce the economic and social impact of the country's zero-Covid policy.

Banks are also encouraged to negotiate with homebuyers on extending mortgage repayment. That may alleviate the risk of social unrest among homebuyers who have engaged in a widespread boycott on mortgage payments since July.