China's commercial banks have approved 5,392 real estate \"white list\" projects, allocating nearly 1.4 trillion yuan ($196.2 billion) in financing, according to the National Financial Regulatory Administration (NFRA) on Wednesday.
In January, China's Ministry of Housing and Urban-Rural Development and the General Administration of Financial Supervision issued a joint guiding document to establish the urban real estate financing coordination mechanism. This initiative aims to streamline financing processes and support the real estate sector.
Building on this, in June, with the consent of China's State Council, the Financial Supervision Administration and the Ministry of Housing released a notice to enhance the efficiency and quality of \"white list\" projects. The notice introduced several optimization measures to advance the urban financing coordination mechanism further, ensuring that real estate projects receive the necessary funding to meet housing delivery goals.
Liao Yuanyuan, director of the Statistics and Risk Surveillance Department at the NFRA, stated that the approved \"white list\" projects have received timely financial support, safeguarding buyers' legitimate rights and stabilizing the real estate market. She highlighted that since the beginning of the year, the balance of real estate development loans has surged by over 400 billion yuan, operating property loans have increased by 19 percent, and merger and acquisition loans have risen by 21 percent.
Additionally, from January to July, commercial banks issued 3.1 trillion yuan in new personal housing loans, effectively supporting residents' rigid and improved housing demands. Liao emphasized that moving forward, the Financial Supervision Administration will collaborate with relevant departments to consolidate the responsibilities of local governments, real estate enterprises, and financial institutions. The goal is to guide financial institutions in providing robust real estate financial services and support the stable and healthy development of the real estate market as a whole.
Reference(s):
China raises 1.4 tln yuan to fund property 'white list' projects
cgtn.com
