Beijing, February 1, 2024—China is stepping up efforts to renovate urban informal settlements in major cities, marking 2024 as a pivotal year for urban renewal initiatives. By the end of January, several cities had announced the implementation and allocation of the first special loans dedicated to transforming these areas.
The new financing, primarily in the form of special loans, is aimed at supporting initial costs, compensation, and the construction of resettlement housing and associated infrastructure. Operating on a closed-loop, dedicated basis, these loans provide low-cost and efficient financing that adheres to the principle of break-even, ensuring sustainable development.
On January 30, the China Development Bank issued 9.08 billion yuan (approximately $1.26 billion) in special loans for village renovation projects. This substantial funding will support nearly 100 projects across cities including Guangzhou, Zhengzhou, and Xi’an. The initiative is set to directly benefit over 100,000 residents and facilitate the construction of 238,400 resettlement housing units, significantly improving living conditions for many urban dwellers.
Xi’an, one of the key cities in this initiative, received 500 million yuan in special loans on the same date, earmarked for two specific village renovation projects. The Xi’an Housing and Construction Bureau expressed their commitment to actively and steadily promote the initiative, highlighting its potential to enhance urban functionality and stimulate economic growth.
Huang Yu, CEO of China Index Holdings, shared an optimistic outlook for the urban renewal projects. Speaking at a China News Services event in January, Huang predicted that the renovation of informal settlements within cities will drive an investment scale equating to approximately 1 billion square meters over the next five years. This translates to an average annual creation of 44 million square meters in new residential demand.
“The total investment, encompassing land acquisition and construction for these renovations, is estimated to reach a staggering 10 trillion yuan,” Huang stated. “These projects not only improve living conditions but also act as a significant driver for economic growth in urban areas.”
The accelerated renovation efforts reflect China’s broader commitment to urban development and modernization. By transforming informal settlements, the country aims to enhance urban infrastructure, improve residents’ quality of life, and promote sustainable economic growth.
As these projects unfold, they are expected to offer substantial opportunities for investors, construction firms, and local businesses. Moreover, the improved infrastructure and housing conditions are set to attract talent and resources, further boosting the economic vitality of China’s major cities.
Reference(s):
cgtn.com
