China Bolsters Affordable Housing with $41 Billion Loan Facility
Real Estate

China Bolsters Affordable Housing with $41 Billion Loan Facility

China's central bank convened a virtual meeting to enhance its financial backing for affordable housing, aiming to expedite the sale of unsold housing stock as a looming property crisis threatens the growth of the world's second-largest economy.

Last month, the central bank introduced a 300 billion yuan ($41.4 billion) relending loan facility dedicated to affordable housing. This recent meeting, hosted from Jinan in Shandong province, underscores the central bank's efforts to promote this facility among local governments and banks.

In a strategic move, Beijing has authorized local state-owned enterprises (SOEs) to purchase unsold completed homes. The relending facility is designed to assist these SOEs in acquiring properties at "reasonable prices," facilitating a faster turnover of existing commercial housing stock in a market-oriented manner.

The People's Bank of China (PBOC) emphasized that the relending facility complements its "whitelist" mechanism introduced in January. This mechanism enables local governments to nominate housing projects, encouraging both state-owned and commercial banks to lend to developers. The PBOC stressed that SOEs' purchases should follow principles of "voluntary participation, demand-based ordering, and reasonable pricing" to maintain business sustainability and avoid the creation of new local hidden debt.

Officials from Jinan, Tianjin, Chongqing, and Zhengzhou shared insights from their local trial experiences during the meeting, which saw in-person attendance from PBOC Governor Pan Gongsheng and Deputy Governor Tao Ling.

Despite the central bank's efforts, analysts and developers caution that the $41 billion relending facility, potentially generating up to 500 billion yuan in bank financing for local SOEs, may have limited impact. The program's constrained size and potentially low purchase prices might not significantly aid cash-strapped developers, they argue.

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

China's central bank convened a virtual meeting to enhance its financial backing for affordable housing, aiming to expedite the sale of unsold housing stock as a looming property crisis threatens the growth of the world's second-largest economy. Last month, the central bank introduced a 300 billion yuan ($41.4 billion) relending loan facility dedicated to affordable housing. This recent meeting, hosted from Jinan in Shandong province, underscores the central bank's efforts to promote this facility among local governments and banks. In a strategic move, Beijing has authorized local state-owned enterprises (SOEs) to purchase unsold completed homes. The relending facility is designed to assist these SOEs in acquiring properties at reasonable prices, facilitating a faster turnover of existing commercial housing stock in a market-oriented manner. The People's Bank of China (PBOC) emphasized that the relending facility complements its whitelist mechanism introduced in January. This mechanism enables local governments to nominate housing projects, encouraging both state-owned and commercial banks to lend to developers. The PBOC stressed that SOEs' purchases should follow principles of voluntary participation, demand-based ordering, and reasonable pricing to maintain business sustainability and avoid the creation of new local hidden debt. Officials from Jinan, Tianjin, Chongqing, and Zhengzhou shared insights from their local trial experiences during the meeting, which saw in-person attendance from PBOC Governor Pan Gongsheng and Deputy Governor Tao Ling. Despite the central bank's efforts, analysts and developers caution that the $41 billion relending facility, potentially generating up to 500 billion yuan in bank financing for local SOEs, may have limited impact. The program's constrained size and potentially low purchase prices might not significantly aid cash-strapped developers, they argue.

Next Story
Real Estate

Colliers India Transacts 207,000 sq ft office space at Embassy TechVillage

Embassy Office Parks REIT, India’s first listed REIT and the largest office REIT in Asia by area, announced that it has signed an Agreement to Lease (‘ATL’) with global cyber security company Rubrik at Embassy TechVillage in Bengaluru.Colliers, a leading global diversified professional services company, specialising in commercial real estate services, engineering consultancy and investment management facilitated the transaction for Rubrik.Located on Bengaluru’s Outer Ring Road, Embassy TechVillage is one of Embassy REIT’s flagship office parks which offers world-class office spaces, ..

Next Story
Infrastructure Urban

Ensemble Infrastructure India Appoints Suman Saha as Director of Design

Ensemble Infrastructure India Ltd, a leading workplace design and build fit-out company, has appointed Suman Saha as its new Director of Design. With 25 years of experience in the industry, Suman is recognized for his innovative approach and excellence in design leadership.Working closely with the CEO, Suman’s appointment will enhance the company’s design communication across multiple touchpoints, ensuring smooth collaboration between clients, designers, and execution teams for superior project outcomes. Under his guidance, Ensemble will focus on creating workspaces and design labs that em..

Next Story
Products

Ribbon Vanity by Küche7: Fluid Design Meets Everyday Elegance

Küche7, pioneers in luxury stainless steel kitchens, have unveiled the Ribbon Vanity, a graceful creation that transforms bathroom spaces with its soft, flowing design and understated sophistication. Inspired by the fluid form of a ribbon, this vanity combines smooth finishes, clean lines, and gentle curves, offering a timeless aesthetic that seamlessly complements diverse interior styles.Available in a refined blush pink hue, the Ribbon Vanity effortlessly merges functionality with elegance. With thoughtfully designed storage options, it ensures that bathroom essentials are neatly organised ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000