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Beijing, China The central bank and the banking and insurance regulator on Friday said it plans to encourage commercial banks to issue loans to buy houses by rental housing clusters, with an aim to revive the housing stock in big cities and improve quality of life for the youth. to solve the problems of
China will enhance the lending capacity of financial intuitions for housing lease loans and broaden bond financing channels for rental housing firms, according to a draft solicitation for comments released by the Central Bank and the China Banking and Insurance Regulatory Commission.CBIRC,
China will also facilitate the issuance of operating loans for housing leasing and strengthen credit support for the development and construction of rental housing.
The draft states that firms with continuous and stable cash flows will be permitted to launch innovative housing rental guarantee cover bonds. In January, state media reported that Chinese authorities would issue more policies to support the rental housing market in the near future, including a 100 billion yuan ($14.4 billion) plan to support rental housing loans.
Chinese banks are gearing up to increase credit support to prop up the economy after harsh COVID measures and a crisis in the property sector dragged China’s growth in 2022 to one of its worst rates in nearly half a century.
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