Zhengzhou holds meeting to help 7 major housing firms address difficulties
Published: Jul 27, 2022 11:56 PM
Housing market Photo:VCG
Housing market Photo:VCG

Zhengzhou, Central China's Henan Province, held a meeting with seven major real estate enterprises to help address their current difficulties, further ensuring house delivery, normal production as well as legal rights of home buyers, a Chinese media outlet learned from an involved firm on Wednesday.

The enterprise said that during the meeting, the city’s housing security and real estate administration gave preferential support for the seven property companies, including mergers and acquisitions, bankruptcy reorganization as well as secured housing leasing.

The report came after that a screenshot of a document labeled Zhengzhou Housing Security and Real Estate Bureau issued on July 20 was circulated on the internet, saying that the administration held a meeting to reporting the "voluntary withdrawal of major real estate companies from projects."

The involved enterprise was quoted as saying in an interview with that instead of exiting projects, the “withdraw” in the reporting materials is a generic term for four support models including acquisition, bankruptcy and restructuring.

Experts noted that it is a good opportunity for both companies and owners to solve the current temporary predicament to ensure housing delivery.

“The policy proposes rich solution measures, implementing different response means for different properties, which is more pragmatic and conducive to addressing current problems,” Yan Yuejin, research director at Shanghai-based E-house China R&D Institute, told the Global Times on Wednesday.

Zhengzhou’s action is also an example for other cities across the country to explore the solution to the plight of head real estate enterprises, Yan noted.

So far, the authorities in Henan has supported more than 20 financial institutions to clear the risk, revitalize over 10 problem properties, and help more than 10 listed companies and troubled firms address their difficulties.