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Amanda Lee

Chinese vice-premier He Lifeng has called for more loans and home delivery guarantees for targeted “white list” real estate projects to help stabilise a housing market that has been a stumbling block to the country’s economic recovery.
He made the remarks during a trip from Thursday to Saturday to the industrial city of Taiyuan in north China’s Shanxi province as well as Xian in neighbouring Shaanxi province, according to a report by state news agency Xinhua on Saturday.
He said the property market was a barometer of the macroeconomy, and better management of the sector was crucial for promoting a sustained economic recovery and protecting the interests of the people.
He highlighted the importance of real estate financing coordination mechanisms, and called for fixing “problematic” projects to meet China’s “white list” standards as soon as possible. Financial institutions should be more efficient at credit approval and loan disbursement, he added.
China launched a “project white list” mechanism in January, with local governments recommending to banks residential projects suitable for financial support and coordinating with financial institutions to meet project needs.
The mechanism is a key plank of Beijing’s efforts to ease the sector’s debt crisis and boost confidence in an industry that accounts for a quarter of China’s gross domestic product (GDP).
China’s commercial banks have approved 5,392 real estate white list projects, with nearly 1.4 trillion yuan (US$198 billion) in financing, according to the National Financial Regulatory Administration in August.


The vice-premier also called for expanding the scope of property projects under the white list mechanism by including all eligible residential projects under construction and sold, to ensure developers could deliver high-quality projects on time.
“At the same time, we must actively promote the acquisition of existing commercial housing for use as affordable housing,” He said, adding it was necessary to make good use of support policies such as the affordable housing relending scheme to speed up the clearance of housing inventory.
He also visited large supermarkets in Taiyuan and key foreign trade enterprises in Xian to learn about the situation of exports as well as the progress of trade-in programmes for consumer goods, which he said must be given full play to drive consumption.
He’s comments came after the Ministry of Finance on Saturday promised new measures to support the property sector and hinted at greater government borrowing to shore up the economy amid concerns that Beijing’s monetary and financial measures have not been enough to revitalise China’s lacklustre economy.
Finance Minister Lan Foan announced that the proceeds of special-purpose bonds could be used to buy both housing and land from developers. The move would expand a rescue programme announced in May that included asking local governments to buy unsold homes from beleaguered developers and easing rules on purchases.
“The central government still has quite a lot of room to borrow and increase the deficit,” Lan said, without providing a time frame or figure.
Finance vice-minister Liao Min said on Saturday that policymakers were studying favourable tax policies for the property sector.
China’s troubled property market saw a glimmer of hope during the week-long National Day holiday as buying interest picked up after Beijing rolled out measures intended to stimulate consumption, investment and property sales.


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He Lifeng calls for efforts to help China beat property sector slump, which has been a stumbling block to economic recovery


He Lifeng calls for efforts to help China beat property sector slump, which has been a stumbling block to economic recovery.


China economy

He Lifeng

China property

Chinese vice-premier urges more ‘white list’ lending to stabilise housing market

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}He Lifeng calls for efforts to help China beat property sector slump, which has been a stumbling block to economic recovery

He Lifeng calls for efforts to help China beat property sector slump, which has been a stumbling block to economic recovery