(Bloomberg) -- Cash-strapped Chinese property developers said a range of their housing projects have been listed as eligible for funding under the latest program to support the ailing sector. 

Country Garden Holdings Co., which defaulted on a dollar bond late last year, said it has more than 30 of its projects listed by local authorities as suitable for financing support, adding it hopes to join the lists of some other provincial governments. Sunac China Holdings Ltd., which completed offshore bond restructuring months ago, said more than 90 of its developments have been included in so-called white lists by more than 20 city governments. 

The flurry of activity comes just three weeks after Beijing urged local authorities to draft a list of projects eligible for funding. Policymakers want risk-averse banks to step up lending to the real estate sector, which saw credit growth slow to the weakest in more than a year last quarter, undermining developers’ ability to complete homes. 

Local officials must “quickly and attentively study and suggest eligible projects, coordinate the distribution of loans and support financing needs with precision,” the housing ministry concluded in a late-January meeting with officials in 35 major cities. 

By establishing a so-called “coordination mechanism,” central government officials asked major banks to approve a white list of property works, and requested local authorities to ensure progress. The central government will monitor the effort weekly, according to the meeting. 

As of January, local governments across 170 cities have recommended 3,218 projects to local banks, according to a Sunday report by the housing ministry-backed China Construction News. Of those, 83 have received loans totaling 17.9 billion yuan ($2.5 billion), the report said. Most were for those of private or partially state-backed developers. 

Among other mid-sized developers, Sino-Ocean Group Holding Ltd., which plans to extend all of its local yuan bonds outstanding, has about 20 white-listed projects. Shimao Group Holdings Ltd. said 16 of its developments entered such lists. Chongqing-based Jinke Properties Group Co. said more than 20 sites were identified as eligible for funding. 

Some of the developers saw their shares advance on Monday, even as a Bloomberg Intelligence gauge of Chinese real estate stocks declined. Country Garden, Sino-Ocean and Shimao rose more than 1% in Hong Kong trading, while Sunac gained 0.9%. 

“There’s a medium threshold for such funding support,” said Yan Yuejin, research director at E-house China Research and Development Institute. “Residential projects with some short-term liquidity stress may be able to get proceeds.” 

One of the first residential developments to secure funding is a suburban complex in southwestern Guangxi province, China Construction News reported. The state-backed Lotus Courtyard, under construction by a local government financing vehicle, obtained a 330 million yuan loan from China Minsheng Banking Corp. 

Doubts linger over how such efforts can materially help cash-starved builders. 

Funding for Country Garden’s 30 shortlisted works is “unlikely to materially improve the developer’s liquidity,” Bloomberg Intelligence property analyst Kristy Hung wrote in a Monday note. “It has a total of 3,103 projects, but faces hurdles in obtaining financing from banks.” 

©2024 Bloomberg L.P.