The People’s Bank of China (PBOC) announced on Friday the establishment of a 300-billion-yuan (approximately $42.25 billion) relending facility to bolster government-subsidized housing projects. This significant move aims to address housing affordability and stimulate the real estate sector in the Chinese mainland.
Tao Ling, an official with the PBOC, revealed at a press conference that local state-owned enterprises are encouraged to utilize these funds to purchase reasonably priced commercial homes that have completed construction. These properties will then be repurposed to provide affordable housing for residents.
This initiative is expected to alleviate housing shortages and support urban development by making effective use of existing real estate inventory. By converting completed commercial properties into subsidized housing, the program seeks to provide cost-effective living solutions for a broader segment of the population.
Analysts suggest that this strategy could also help stabilize the housing market and promote economic growth. By incentivizing state-owned enterprises to participate, the government is leveraging public resources to address social needs while supporting key industries.
The relending facility reflects the government’s commitment to improving living standards and ensuring access to affordable housing. It aligns with broader economic policies aimed at fostering sustainable development and enhancing the well-being of citizens.
Reference(s):
China to set up $42b relending facility for govt-subsidized housing
cgtn.com
