Loans approved for China's "white list" real estate projects have exceeded 5 trillion yuan (about 695.5 billion U.S. dollars), according to the National Financial Regulatory Administration (NFRA) on Sunday.

The risks of China's small and medium-sized financial institutions have been significantly reduced, and the "white list" mechanism has been effective, the NFRA said.

Efforts will be made to speed up the reform and risk reduction of small and medium-sized financial institutions, and to deal with high-risk institutions. Work should also be done to expand the "white list" mechanism and increase its efficiency, and build a new development model of the real estate sector, said the NFRA.

Under the "white list" mechanism launched in January 2024, local authorities are recommending that financial institutions provide financial support to eligible real estate projects.

The mechanism is part of China's efforts to stabilize the sector weighed by debt problems and boost industry confidence.