PBOC Boosts Rental Housing Support With City-Specific Policy
(Bloomberg) -- China's central bank will increase financial support for rental housing and tailor its property policies to conditions in different cities as it largely affirms its stance since late year.
The People's Bank of China reiterated it will promote the real-estate sector's healthy development, according to a Friday statement concluding a Tuesday meeting that planned financial market regulation and credit policy work in 2022.
The PBOC will continue to implement its prudential management system for property financing and insist the principle that “housing is for living in, not speculation,” according to the statement.
The comments are in line with government's cautiously dovish stance on the struggling property sector indicated in a key economic planning conference in late 2021. The latest policy follows moves by more cities to relax curbs on housing and lower mortgage rates to shore up confidence.
The PBOC will boost financial support for the service sector suffering from the pandemic, according to the statement. It will prevent and resolve default risks in the bond market, continue to crack down on cryptocurrency trading and push for the rectification of online platforms, it said.
In a separate joint policy document released late Friday, the China Banking and Insurance Regulatory Commission and the PBOC said they will support banks setting “reasonable standards” for first-time home buyers' mortgages. They aim to guide banks in satisfying the “reasonable” credit demand of buyers who meet purchase requirements and have stable income.
There are around 300 million such “new urban residents” in China, defined as those who moved to cities but haven't gained access to a hukou, or a residency permit that enables them to access local public services, as well as those who only have had a hukou for less than three years, according to the document.
The banking regulator and central bank will push for more long-term rental housing supply by supporting banks and insurers to provide credit and services to the sector, they said. They will also encourage banks and trusts to participate in the building of affordable housing, the document said.
©2022 Bloomberg L.P.
With assistance from Bloomberg
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