PBOC: Risks Are Controllable; Mortgages Eased: Evergrande Update

China’s central bank said risks to the financial system from China Evergrande Group are “controllable” and unlikely to spread, while urging banks to keep lending to the embattled real estate sector.

Authorities and local governments are resolving the Evergrande situation based on “market-oriented and rule-of-law principles,” People’s Bank of China official Zou Lan said at a briefing Friday. The central bank has asked lenders to keep credit to the real estate sector “stable and orderly,” said Zou, head of the financial market department.

China is also loosening restrictions on home loans at some of its largest banks as Beijing seeks ...