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China to Double Real Estate Loans, Introduces New Support Policies

China is set to implement a series of incremental measures aimed at stabilizing its property sector, with plans to double approved loans for real estate projects by the end of the year. Ni Hong, Minister of Housing and Urban-Rural Development, announced the initiatives at a press conference in Beijing on Thursday.

The event featured officials from the Ministry of Housing and Urban-Rural Development alongside representatives from the Ministry of Finance, the Ministry of Natural Resources, the People’s Bank of China, and the National Financial Regulatory Administration.

Boosting Support for Renovation Projects

According to Ni, the government will enhance support for urban village and dilapidated housing renovation projects. China aims to renovate an additional one million housing units, providing monetary compensation to residents affected by these projects.

Expansion of the “White List” Mechanism

The minister emphasized that all eligible real estate projects will be included in the “white list” mechanism, ensuring their reasonable financing needs are met through loans.

As of October 16, loans approved for “white list” real estate projects had reached 2.23 trillion yuan (approximately $313.11 billion), according to Xiao Yuanqi, deputy head of the National Financial Regulatory Administration.

Xiao further indicated that the approved loan amount for “white list” projects is expected to double to over four trillion yuan by the end of this year.

These substantial financial commitments reflect China’s dedication to stabilizing its property sector, which plays a critical role in the nation’s economic development. By facilitating financing and promoting renovation projects, the government aims to bolster market confidence and promote sustainable growth.

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