Beijing is trying to mobilize up to 1 trillion. yuan ($148 billion) in loans to millions of stalled properties in a bid to revive an indebted sector and prevent a backlash from homebuyers, the Financial Times reported.

In an attempt to end the real estate slump, which played a big role in reducing annual growth to just 0.4% in the second quarter, the People's Bank of China will initially lend about 200 billion rubles to state-owned commercial banks. low-interest loans, charging about 1.75 percent a year, according to people who participated in the discussion.

Under a plan recently approved by China's cabinet, banks will use Bank of China loans, along with their own funds at market rates, to refinance stalled real estate projects.

The government hopes banks will be able to increase their initial fund fivefold to raise about 1 billion yuan in total and partially fill the funding gap needed to complete pending projects, the sources said.