This aerial photo taken on June 24, 2023 shows the downtown area of north China's Tianjin. (Xinhua/Sun Fanyue)

China is pushing forward its financing "white list" mechanism for real estate projects in an effort to stabilize the market.

Under the "white list" mechanism launched in late January, local authorities are recommending real estate projects eligible for financial support to financial institutions. They are also coordinating with financial institutions to fulfill the requirements of these projects.

The mechanism is part of China's efforts to stabilize the sector weighed by debt problems and boost confidence in an industry that accounts for nearly 6 percent of the country's GDP, according to the National Bureau of Statistics.

As of the end of February, more than 200 billion yuan (about 28.17 billion U.S. dollars) of loans had been approved under the mechanism to support about 6,000 real estate projects in 276 cities nationwide, data from the Ministry of Housing and Urban-Rural Development showed.

The "white list" mechanism helps ensure the completion of quality real estate projects developed by companies that are distressed by debt issues, said Zhang Dawei, chief analyst at real estate agency Centaline Property.

Liu Shui, a researcher with the China Index Academy property research institution, said the move will help ease the financing distress of property developers and stabilize market expectations.

The mechanism, along with the country's efforts to advance the building of affordable housing, the construction of public infrastructure for both normal and emergency use and the renovation of villages in cities, is expected to stabilize the real estate market, Liu said.