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China to boost financing for approved housing projects to $560 billion to counter property slump

China has announced it will expand the amount of financing available for housing projects on a “white list” to 4 trillion yuan ($562 billion), seeking to reverse a slump in the property industry

Zen Soo
Thursday 17 October 2024 05:08
China Economy
China Economy (Copyright 2024 The Associated Press. All rights reserved)

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China will expand the amount of financing available for housing projects on a “white list” to 4 trillion yuan ($562 billion), officials said Thursday in Beijing's latest moves to reverse a slump in the property industry.

Minister of Housing and Urban-Rural Development Ni Hong said during a news conference Thursday in Beijing that measures will also be taken to redevelop 1 million urban villages across the country.

The government has been redoubling efforts in recent weeks to stabilize the real estate market after a downturn triggered by a crackdown on excess borrowing. Once a bright spot in China’s economy, the property market has since become a drag.

On Saturday, authorities announced that they would allow local governments to use funds from unallocated government bond quotas and to raise debt ceilings to help prop up the property market.

In late September, the outstanding mortgage rates for individual borrowers were also cut by an average of 0.5 percentage points, and the minimum down payment ratio on purchases of second homes was also lowered to 15% from 25%.

In January, officials announced a list of housing projects that would be eligible for financing. Loans for such projects had reached 2.23 trillion yuan ($313 billion) as of Wednesday, said Xiao Yuanqi, deputy director of the National Financial Regulatory Administration.

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