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By Elaine Kurtenbach

The Associated Press

BANGKOK 鈥� China has rolled out new rules intended to expand access to commercial bank loans for property developers as Beijing doubles down on its effort to end a prolonged crisis in the real estate industry.

The policies will allow real estate companies to use bank loans pledged against commercial properties such as offices and shopping malls to repay their other loans and bonds and to cover operating expenses. They were announced late Wednesday by the People鈥檚 Bank of China, the National Financial Regulatory Administration, and the Finance Ministry.

Beijing has moved to stabilize ailing financial markets and boost the economy by freeing up more money for lending in various ways. That includes cutting required bank reserves.

The flurry of new measures and pronouncements from senior Communist Party officials about the need to stabilize financial markets and build confidence in the economy, the world鈥檚 second largest, appears to reflect a renewed determination to readjust growth.

Dozens of developers have defaulted on their debts following a government crackdown on excessive borrowing in the industry several years ago. The largest, China Evergrande, is still trying to resolve more than $300 billion in debts; a Hong Kong court is due to soon hold a hearing on its restructuring plans.

The latest policies are not a full reversal of the effort to rein in debt and control risks in the property industry.

The new rules say bank loans cannot be used to buy commercial housing or rental housing or to start new construction or buy land. Loans cannot exceed 70 percent of the appraised value of the property being used as collateral and should generally last a maximum of 10 years, with an absolute limit of 15 years.

They also order banks to fully conduct due diligence before and after loans are issued to mitigate and minimize risks.

It鈥檚 unclear what impact the new rules might have on the overall crisis gripping the property market. Land sales have long been a major revenue source for local governments that are now grappling with mounting debts. At the same time, stalled construction of new homes has hit contractors and suppliers of construction materials and home furnishings.

鈥淭he pace and potential size of such loans remain uncertain as banks will likely watch the commerciality and risks of such loans,鈥� UBS economists said in a research note. But the move was a 鈥渟ignificant step鈥� to increase support for developers, they added.

Sales of new homes and home prices have been falling, discouraging consumers from spending since Chinese families tend to have much of their wealth tied up in property. The industry accounts for about a quarter of business activity in China.

鈥淔or developer financing to fundamentally and sustainably improve, property sales need to stop falling and start to recover, which could require more policy efforts to stabilize the property market,鈥� the UBS report said.