China’s commercial banks have approved 5,392 real estate “white list” projects, securing nearly 1.4 trillion yuan (approximately $196.2 billion) in financing, according to the National Financial Regulatory Administration (NFRA) on Wednesday.
In a concerted effort to stabilize the real estate market and protect homebuyers, the Chinese authorities have been proactive in enhancing financial support for key real estate developments. Back in January, the Ministry of Housing and Urban-Rural Development, alongside the General Administration of Financial Supervision, issued a joint guideline to establish an urban real estate financing coordination mechanism.
By June, with the State Council’s consent, the Financial Supervision Administration and the Ministry of Housing released a notice aimed at improving the efficiency and quality of promoting “white list” projects. This initiative introduced several optimization measures to further advance the urban financing coordination mechanism, addressing the reasonable financing needs of real estate projects and effectively supporting the work of ensuring housing delivery.
“The ‘white list’ projects that meet the requirements have received timely financial support, which has played a crucial role in safeguarding the legitimate rights and interests of buyers and stabilizing the real estate market,” said Liao Yuanyuan, director of the Statistics and Risk Surveillance Department at the NFRA.
Liao highlighted significant growth in various loan balances. “Up to now, the balance of real estate development loans has increased by more than 400 billion yuan from the beginning of the year. The balance of operating property loans has increased by 19 percent, and the balance of merger and acquisition loans has increased by 21 percent,” she noted.
Furthermore, from January to July this year, commercial banks issued 3.1 trillion yuan in new personal housing loans, effectively supporting residents’ essential and improved housing needs.
Looking ahead, the Financial Supervision Administration plans to collaborate with relevant departments to continue strengthening the responsibilities of local governments, real estate enterprises, and financial institutions. “We will guide financial institutions in providing real estate financial services and support the stable and healthy development of the real estate market as a whole,” Liao stated.
Reference(s):
China raises 1.4 tln yuan to fund property 'white list' projects
cgtn.com
