Advertisement
Advertisement

China’s top real estate regulator vows to tackle property delivery risks – Xinhua

By:
Reuters
Published: Dec 25, 2021, 14:08 UTC

SHANGHAI (Reuters) - China's top real estate regulator vowed to resolutely tackle risks stemming from overdue delivery of residential properties by some top developers in a bid to maintain social stability, the official Xinhua News Agency reported on Saturday.

Surveillance cameras are seen near a real estate project under construction in Shenzhen, Guangdong

SHANGHAI (Reuters) – China’s top real estate regulator vowed to resolutely tackle risks stemming from overdue delivery of residential properties by some top developers in a bid to maintain social stability, the official Xinhua News Agency reported on Saturday.

Wang Menghui, head of the Ministry of Housing and Urban-Rural Development, also told Xinhua that China will keep its real estate policies consistent and stable, while strengthening coordination in areas including finance, and land and market supervision.

Chinese developers suffered liquidity stress this year as Beijing stepped up its deleverage campaign against the bloated sector, triggering defaults at heavily-indebted players such as China Evergrande Group.

Although Chinese regulators have marginally eased funding restrictions to avoid a hand-landing of the sector, Wang ruled out policy reversal.

China will not use the property sector as a tool to stimulate the economy for short-term growth and will continue to crack down on speculative investment, Xinhua reported, citing Wang.

Instead, China will set up a mechanism to foster long-term development of the real estate industry, while maintaining stability in market expectations, as well as land and property prices.

Wang said the fundamentals of China’s real estate market have not changed, with home-buying demand remaining robust from the still-rapid pace of urbanisation, and the need for better living standards fuelled by the coronavirus epidemic.

Earlier on Saturday, China’s central bank said it will safeguard the legal rights of home buyers and better satisfy their reasonable living needs, vowing to promote healthy development of the country’s real estate market.

(Reporting by Shanghai Newsroom; Editing by Kirsten Donovan)

About the Author

Reuterscontributor

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV. Learn more about Thomson Reuters products:

Did you find this article useful?

Advertisement