China’s financial regulator pledges steps to shore up property market
- National Administration of Financial Regulation says implementing a plan to support real estate projects is a priority for this year
- Meanwhile, central bank announces cuts to certain lending rates and the reserve requirement ratio as property sector’s woes continue to drag on economy
Xiao Yuanqi, deputy head of the National Administration of Financial Regulation, said the priority for this year was to “accelerate the implementation of the urban real estate financing coordination mechanism” – a measure announced earlier this month to ask local governments to better coordinate with financial institutions to provide financial support for real estate projects.
“[We will] ask banks to take action as soon as possible... [and] make good use of the policy toolbox and accurately support the reasonable financing needs of real estate projects,” he added.
Xiao said the regulator will soon convene a meeting, asking local governments to work with housing and construction departments to implement city-specific measures.
Meanwhile, the People’s Bank of China announced it would inject 1 trillion yuan (US$141 billion) of liquidity by slashing the reserve requirement ratio by 50 basis points and lowering the relending rate for some banks loans by 25 basis points.