To support the stable development of the real estate sector, China’s National Financial Regulatory Authority (NFRA) recently announced that it will cover the adequate financing needs of real estate companies. This reflects the “indisputable responsibility” of the financial sector for the real estate sector.
Officials at the National Financial Regulatory Authority (NFRA) on Thursday vowed to step up efforts to support the real estate sector and meet the adequate financing needs of real estate companies.
Xiao Yuanqi, deputy director of NFRA, said at a press conference on Thursday that the financial sector has an undeniable responsibility to strongly support the real estate industry, as it has a long supply chain and far-reaching impact on the national economy and is closely intertwined with people’s lives be. Xiao said that the NFRA has accelerated the implementation of a coordinated financing mechanism with various local governments and provided administrative regions with a list of real estate projects eligible for financing support. The co-director further noted that efforts will be made to specifically support the appropriate financing needs of real estate projects. Finance departments would cover the appropriate financing needs for projects with normal development and provide even greater support to projects that are temporarily facing difficulties but can balance their resources.
In total, the Chinese banking system issued loans worth nearly ten trillion yuan for real estate development and housing mortgages in 2023, which represents a significant amount. Banks’ investments in bonds from real estate companies increased by 15 percent compared to 2022. Merger and acquisition loans and real estate expansion loans totaled over 1 trillion yuan in 2023. In addition, most of the 350 billion yuan in special loans to ensure the delivery of completed housing has already been allocated to projects, and commercial banks have provided appropriate commercial financing to ensure the delivery of housing, said Xiao.
As part of its latest efforts, the NFRA, together with China’s central bank, released guidelines on Wednesday to improve commercial real estate lending: This new policy allows national banks to lend to well-regulated real estate companies and the loans to repay existing real estate project loans and publicly traded bonds to be used until the end of 2024.
At China’s Central Economic Work Conference, a key meeting last December, it was emphasized that active and prudent efforts should be made to mitigate risks in the real estate sector, that the appropriate financing needs of real estate companies of different ownership should be met equally, and that the construction of a new one Development model for the real estate sector should be accelerated. As part of the new support measures, the Chinese real estate market has recently experienced some positive signs of stabilization and its long-term healthy development is on a relatively good foundation.
2024-01-26 04:10:13
#efforts #support #real #estate #market #_China.org.cn
