China to optimize real estate policies amid major changes: central bank
Published: Nov 10, 2023 01:57 AM
A residential community in Beijing's Chaoyang district Photo: VCG

A residential community in Beijing's Chaoyang district File Photo: VCG

The People's Bank of China (PBC), China's central bank, said that it will adapt to the new situation of major changes in supply and demand in the real estate market, while adjusting and optimizing policies at the right time and promoting the stable and healthy development of the property sector, according to a report released by the PBC on Thursday.

Chinese authorities will further relax policies on home purchases, which is currently a major task, Yan Yuejin, research director at Shanghai-based E-house China R&D Institute, told the Global Times on Thursday, adding that a lot of the corresponding work has already been implemented.

Pan Gongsheng, governor of the PBC, said on Wednesday at the Annual Conference of Financial Street Forum 2023 that the central bank will actively cooperate with responsible authorities and local governments in promoting financial support for the stable and healthy development of the sector, while lowering the risk level in the real estate market and preventing any spillover.

Pan added that the central bank will guide financial institutions to maintain the stability of real estate credit, bonds and other key financing channels and meet the reasonable financing needs for different enterprises, according to media reports.

China has stepped up policy efforts to promote the sound development of the property market in 2023, with measures being rolled out including cutting interest rates on existing mortgages for first-home loans and easing mortgage rules while official data has shown signs of recovery.

Chinese first-tier megacities have seen home prices stabilize recently, according to official data. New home prices in China's four first-tier cities - Beijing, Shanghai, Guangzhou and Shenzhen - stayed flat month-on-month in September, reversing a month-on-month decline of 0.2 percent in August.

Meanwhile, September credit statistics showed a month-on-month addition of over 100 billion yuan ($13.93 billion) in real estate development loans and individual mortgages, according to Xinhua.

The PBC's report noted that the bank will also maintain the stability of the yuan exchange rate while promoting a high level of two-way financial opening-up. It will continue to manage the economy and finance amid the continuous opening-up and prevent and control risks.

Moving forward, the PBC said that it will implement a slew of measures targeting different sectors such as implementing prudent monetary policy precisely and vigorously.

Global Times