SHANGHAI: China’s top real estate regulator vowed to resolutely tackle risks stemming from overdue delivery of residential properties by some top developers in a bid to maintain social stability, the official Xinhua News Agency reported on Saturday.

Wang Menghui, head of the Ministry of Housing and Urban-Rural Development, also told Xinhua that China will keep its real estate policies consistent and stable, while strengthening coordination in areas including finance, and land and market supervision.

Chinese developers suffered liquidity stress this year as Beijing stepped up its deleverage campaign against the bloated sector, triggering defaults at heavily-indebted players such as China Evergrande Group.

Although Chinese regulators have marginally eased funding restrictions to avoid a hand-landing of the sector, Wang ruled out policy reversal.

China will not use the property sector as a tool to stimulate the economy for short-term growth and will continue to crack down on speculative investment, Xinhua reported, citing Wang.

Instead, China will set up a mechanism to foster long-term development of the real estate industry, while maintaining stability in market expectations, as well as land and property prices.

Wang said the fundamentals of China’s real estate market have not changed, with home-buying demand remaining robust from the still-rapid pace of urbanisation, and the need for better living standards fuelled by the coronavirus epidemic.

Earlier on Saturday, China’s central bank said it will safeguard the legal rights of home buyers and better satisfy their reasonable living needs, vowing to promote healthy development of the country’s real estate market.