China to boost financing for approved housing projects to $560 billion to counter property slump - The Round Table China has asserted it will expand the amount of financing available for housing projects on a “white list” to 4 trillion yuan ($562 billion), seeking to reverse a slump in the property industry
HONG KONG -- China will expand the amount of financing available for housing projects on a “white list” to 4 trillion yuan ($562 billion), officials disclosed Thursday in Beijing's most recent moves to reverse a slump in the property industry.
Minister of Housing and Urban-Rural Development Ni Hong stated during a news conference Thursday in Beijing that measures will also be taken to redevelop 1 million urban villages across the country. Ni stopped short of illuminating on the scale of the funding for the redevelopment.
He reported that the housing market had “bottomed out” after three years, with October data showing a spike in property sales.
The government has been redoubling efforts in recent weeks to stabilize the real estate market after a downturn triggered by a crackdown on excess borrowing. Once a bright spot in China’s economy, the property market has since become a drag.
On Saturday, authorities held that they would allow local governments to use funds from unallocated government bond quotas and to intensify debt ceilings to facilitate prop up the property market.
In late September, the outstanding mortgage rates for individual borrowers were also cut by an average of 0.5 percentage points, and the minimum down payment ratio on purchases of second homes was also lowered to 15% from 25%.
In January, officials proclaimed a list of housing projects that would be eligible for financing. Loans for such projects had reached 2.23 trillion yuan ($313 billion) as of Wednesday, announced Xiao Yuanqi, deputy director of the National Financial Regulatory Administration.
Some analysts however announce that measures implemented so far will not be enough to solve China's property crisis in the near term.
“It’s a ticking time bomb that will take years, maybe even decades, to defuse,” announced Stephen Innes, administering partner at SPI Asset Management. “No matter how much money or effort they throw at it, this problem isn’t going away anytime soon.”
Regards to ABC News
Category: World-News
Tag: China to boost financing for approved housing projects to dollar 560 billion to counter property slump The Round Table
Written by Author
Published 10/17/2024