China Pressures Banks to Help Ailing Property Developers

The video discusses the challenges faced by property developers in securing bank loans due to a lack of confidence and increased risk perception by banks. Despite guidance from the PBC, bank lending to developers has decreased, exacerbating the cash crisis as home sales and offshore bond markets falter. Banks are cautious, focusing on risk management and preferring to lend to other sectors, leaving developers in a liquidity trap.

What is the current state of the property market as described in the text?

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How are banks managing their risk in relation to lending to property developers?

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