China's central bank urges backing for affordable housing in Shanghai

Goldstream Investment

10/12/2021 10:25

BEIJING, Dec 10 (Reuters) - The Shanghai branch of China's
central bank has asked banks and financial bodies to spur
innovation in products and services to support affordable
housing while urging prudence on developers, it said in a
statement on Friday. 
    China's politburo, a top-decision making body, said this
week it would support the private housing market to better meet
the reasonable needs of home buyers, as regulators make
financing changes to ease liquidity strains in property markets.
 urn:newsml:reuters.com:*:nL1N2SR0H7 urn:newsml:reuters.com:*:nB9N2RW01V
    Banks and developers attended a meeting on Friday in the key
business hub held jointly by the People's Bank of China branch,
the office of the China Banking and Insurance Regulatory
Commission and local housing and financial regulatory bureaus.
    "The increasing supply of affordable housing is a key
approach to meet the living needs for citizens new to Shanghai
and the younger generation, and an effective measure to help
materialise common prosperity," the statement said. 
    At the meeting, banks signed strategic pacts with the local
government-backed Shanghai Land Group, Shanghai CIFI Holdings
Group, Hong Kong-listed Shui On Land Ltd  0272.HK , and
Shanghai-based Dahua Group to support affordable housing, the
statement added. 
    Such signatories are the Industrial and Commercial Bank of
China  601398.SS   1398.HK , China Construction Bank  601939.SS 
 0939.HK , Bank of Communications  601328.SS   1328.HK ,
Shanghai Pudong Development Bank  600000.SS , Bank of Shanghai
 601229.SS , and Shanghai Rural Commercial Bank  601825.SS .

 (Reporting by Shanghai Newsroom and Beijing Newsroom; Editing
by Clarence Fernandez)
 ((cheng.leng@thomsonreuters.com; +8610-5669-2129;))