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E-mail Xinhua, April 23, 2024
BEIJING, April 23 (Xinhua) -- Adhering to the principle that "housing is for living in, not for speculation," China is implementing targeted measures on both the supply and demand sides to transform its property sector development model and promote the steady and healthy growth of the real estate market.
The country is ramping up financial support for real estate companies through targeted policies, enabling them to deliver quality products while satisfying the diversified demand of residents in different places or groups. Outlined below are some of the key takeaways of this work.
STRENGTHENING FINANCIAL SUPPORT, PROTECTING PEOPLE'S INTERESTS
China has pledged to meet the justified financing demand of real estate enterprises under various forms of ownership equally, while cracking down on behaviors hampering people's interests to stabilize the property market.
The country's top housing authority plans to work with financial administrative authority to guide localities in establishing real estate financing coordination mechanisms, and in extending support for key projects, according to Ni Hong, minister of housing and urban-rural development.
Under a "white list" mechanism launched in late January, local authorities are recommending real estate projects eligible for financing support to financial institutions. They are also coordinating with financial institutions to fulfill the requirements of these projects.
To date, more than 300 Chinese cities in 31 provincial-level regions have already facilitated financing channels and presented over 6,000 real estate projects that are eligible for financing support on "white lists." Among these projects, 82.8 percent have been proposed by private companies or mixed-ownership enterprises.
By the end of February, commercial banks had approved related loans exceeding 200 billion yuan (about 28.15 billion U.S. dollars).
At the same time, real estate companies facing insolvency crises or incapable of business operations should enter into bankruptcy or asset-restructuring proceedings under the principles of marketization and legalization, Ni said.
He also stressed that the country will be resolute in investigating and cracking down on behaviors that harm the interests of the people.
In mid-March, for example, Chinese property developer Evergrande Group received notice that administrative penalties and market bans would be issued by the China Securities Regulatory Commission, the country's securities regulator. The commission decided to ban Xu Jiayin, chairman of Evergrande, from entering the securities market for life and issued both a warning and a fine to Xu for making decisions on and organizing financial fraud.
It also determined that Evergrande Real Estate Group would receive a warning and a fine of 4.18 billion yuan for the issuance of false information in its 2019 and 2020 annual reports, for suspected fraud in its issuance of corporate bonds, and for its failure to disclose required information in a timely manner.
SATISFYING CITY-SPECIFIC, DIVERSE DEMAND
As great changes have taken place in the supply and demand of China's real estate market, the country is taking a people-oriented approach to transforming its property market, working to meet the diversified demand of different groups, be it demand for primary living needs or that for improved housing conditions.
China has proposed shoring up the construction of affordable housing, the renewal of urban villages, and the development of public infrastructure for both regular and emergency use.
Related projects have boosted real estate investment by 0.6 percentage points, according to Sheng Laiyun, deputy head of the National Bureau of Statistics (NBS).
In addition to advancing the construction of affordable housing, efforts should also be made to build high-quality housing so that people can lead healthy and convenient lives, Ni said.
NBS data shows that home ownership among China's 180 million rural migrant workers in cities is not high, and houses of below 90 square meters still account for the vast majority of existing housing in the country.
Basic housing demand and the need for improved housing are still driven strongly by the advancement of urbanization and the improvement of people's living standards, Sheng said, noting that there is a solid foundation for the sustained and healthy growth of the property market.
Since last year, China has taken series of measures, including the implementation of preferential mortgage terms, decreased interest and down payment rates, and tax and fee reliefs, to cater to the various needs of home buyers.
This year, more than 30 cities have introduced policies offering professional assistance, tax incentives or subsidies to support residents willing to sell their old homes to purchase better ones.
"The real estate market is a city-based market, and the supply and demand situation varies significantly in different cities," Ni said.
He stressed the necessity of introducing accurate, city-specific policies, and said that city governments, with sufficient autonomy in their regulation and control work, should formulate and implement housing development plans according to their local population, supply and demand.
Beijing's Tongzhou District is among the localities that have eased home purchase requirements, including the duration of tax and social securities payments, thereby strengthening support for commuters balancing work and life.
Many cities across the country have also implemented favorable home purchase policies for families with two or more children. Enditem
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