The two sectors have launched financial initiatives to support the development of the housing rental market
The People's Bank of China and the State Administration of Financial Supervision and Administration recently issued a document to support the development of the housing rental market by strengthening the innovation of housing rental credit products and service models, broadening diversified investment and financing channels in the housing rental market, and strengthening and improving the financial management of housing rental.
Image from the People's Bank of China website
In order to accelerate the standardized development of the housing rental financial market, the financial management department drafted the "Opinions on Financial Support for the Development of the Housing Rental Market (Draft for Comments)", which was released to the public for comments in February 2023. According to a relevant person from the People's Bank of China, a total of 60 valid opinions were received during the consultation period, and most of the opinions have been absorbed. The two departments officially issued opinions on financial support for the development of the housing rental market, which will come into force on February 5, 2024. The newly released opinions are clear and increase credit support for housing rental development and construction. Support commercial banks in issuing housing rental development and construction loans to real estate development enterprises, industrial parks, rural collective economic organizations, enterprises and institutions, and other entities that build and renovate long-term rental housing in accordance with laws and regulations. The term of the housing lease development and construction loan is generally 3 years, and the longest is not more than 5 years. The opinion proposes that to meet the reasonable financing needs of groups purchasing rental housing in bulk, the term of housing rental group housing purchase loans shall not exceed 30 years. The Opinions also clearly support the issuance of housing lease operating loans, and encourage commercial banks to actively explore financial service models and financial products that are suitable for the needs and characteristics of housing rental-related enterprises. In terms of broadening the diversified investment and financing channels of the housing rental market, the opinions put forward that the financing channels of housing leasing enterprise bonds should be broadened, the issuance of housing rental guarantee bonds should be supported, real estate investment trusts should be steadily developed, and all kinds of social funds should be guided to invest in the housing rental field in an orderly manner. In addition, the opinions emphasize strengthening and improving the management of housing leasing finance, strictly enforcing the boundaries of housing leasing financial business, strengthening the management of housing leasing credit funds, standardizing the innovation of direct financing products for housing leasing, and preventing financial risks in housing leasing.
Source丨Xinhua News Agency release丨Zhang Nan review丨Hao Fang
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