Xinhua
24 Nov 2022, 21:35 GMT+10
BEIJING, Nov. 24 (Xinhua) -- China's financial authorities are stepping up policy support for the housing market to facilitate the stable and healthy development of the real estate sector.
In one of the latest moves, the People's Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission issued a 16-step guideline on Wednesday, pledging to stabilize loan supply for real estate development and support the reasonable demand for individual housing loans.
Support will be given to two policy banks on issuing specific loans to qualified borrowers to ensure the delivery of housing projects, the guideline noted.
Commercial banks are encouraged to grant loans for the acquisition of real estate projects in a prudent and orderly manner, while house buyers might enjoy repayment extensions on their housing loans under certain circumstances.
The guideline reiterated that "housing is for living in, not for speculation," and called for city-specific measures.
"China's housing sector is linked to a lot of upstream and downstream industries. Therefore, its healthy development is of great significance to the overall economy," Yi Gang, governor of the PBOC, told the Annual Conference of Financial Street Forum 2022 earlier this week.
Yi said the central bank has tailored policy solutions to local specificities, such as cutting mortgage rates and down payment ratios and expanding support for bond issuance by private firms, including private housing developers, through credit enhancement facilities.
The PBOC has issued 200 billion yuan (about 28.09 billion U.S. dollars) worth of special loans to ensure the timely completion of pre-sold housing projects and put in place structural policy tools to encourage active participation by commercial banks.
Banking institutions should, under regulatory guidance, both prevent pro-cyclical amplification of risks and avoid excessive risk aversion, noted Pan Gongsheng, deputy governor of the PBOC.
Speaking at a work conference on credit business this week, Pan called for implementing the long-term mechanism for the real estate sector as well as the differentiated housing credit policies to meet people's needs for basic housing and improved conditions.
He urged lenders to carefully study and implement the supporting measures of financial regulators for the real estate sector to ensure the steady and healthy development of the housing market.
Lian Ping, chief economist at Zhixin Investment Research Institute, noted that with regulatory support underway, in commercial housing, both the completed area and the area under construction have seen a marked improvement over the past two months.
While positive signs are emerging in the real estate market, it is still necessary to bolster support to help stabilize the housing market, Lian said.
Get a daily dose of Taiwan Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Taiwan Sun.
More InformationOTTAWA, Canada: With Canada Post struggling to maintain operations amid labour unrest, rivals like FedEx and UPS are stepping in to...
NEW YORK, New York - U.S. and global markets showed a mixed performance in Tuesday's trading session, with some indices edging higher...
PARIS, France: French military and intelligence officials have accused China of orchestrating a covert campaign to damage the reputation...
NEW DELHI, India: Birkenstock is stepping up its efforts to protect its iconic sandals in India, as local legal representatives conducted...
HONG KONG: China has fired back at the European Union in an escalating trade dispute by imposing new restrictions on medical device...
NEW YORK, New York - Monday's trading session saw mixed performances across U.S. and global markets, with several major indices posting...
DHARAMSHALA, India: The Dalai Lama turned 90 on July 6, celebrated by thousands of followers in the Himalayan town of Dharamshala,...
ZAGREB, Croatia: A massive concert by popular Croatian singer Marko Perković, known by his stage name Thompson, has drawn widespread...
WASHINGTON, D.C.: Elon Musk's entry into the political arena is drawing pushback from top U.S. officials and investors, as his decision...
CULVER CITY, California: TikTok is preparing to roll out a separate version of its app for U.S. users, as efforts to secure a sale...
WASHINGTON, D.C.: President Donald Trump claimed he was unaware that the term shylock is regarded as antisemitic when he used it in...
PARIS, France: A strike by French air traffic controllers demanding improved working conditions caused significant disruptions during...