China's PBC calls for healthy property market

China's central bank has called on major banks to work to keep the real estate market healthy amid the financial woes of real estate giant Evergrande Group.

The People's Bank of China and the China Banking and Insurance Regulatory Commission held a meeting on the real estate market on Wednesday. Officials of 24 major banks in the country attended.

This comes as Evergrande Group has fallen into financial difficulties with huge debts, causing concerns about the situation of other property firms.

The authorities asked the banks to maintain the healthy development of the real estate market, based on market principles, and protect consumers' interests. They also said real estate investment should not be speculative.

Observers say the authorities want to prevent the sector's turmoil from affecting the entire economy and the financial system.

Evergrande Group said on Wednesday that it will sell a 1.5 billion dollar stake in a regional bank.

But it remains unclear how the cash-strapped firm will deal with interest payments for dollar-denominated corporate bonds.