On August 20, the Ministry of Housing and Urban-Rural Development (MOHURD) and the People’s Bank of China (PBC) held a meeting to discuss with key real estate enterprises in Beijing, with regard to the further implementation of the long-lasting mechanism for promoting the sound development of the real estate sector. Officials from relevant departments of the China Banking and Insurance Regulatory Commission (CBIRC), the China Securities Regulatory Commission (CSRC), the State Administration of Foreign Exchange (SAFE), and the National Association of Financial Market Institutional Investors (NAFMII), and chiefs from real estate enterprises attended the meeting.
The meeting noted that since the 19th CPC National Congress, relevant departments and local governments had implemented the decisions and arrangements of the CPC Central Committee and the State Council, and adhered to the principle that “houses are for living in, not for speculation”, and the requirement that the real estate market shall not be used to provide a short-term stimulus for the economy. Municipal governments took primary responsibility in stabilizing land price, housing price and market expectations, with consistent and stable regulatory policies for the real estate market in place and prudent implementation of the long-lasting mechanism of the real estate sector. The real estate market enjoyed steady and sound development.
It was pointed out that, in order to further carry out the long-lasting mechanism of the real estate sector, well implement the prudential management system for real estate finance, and promote the financing of real estate enterprises in a more market-oriented, rule-based, and transparent manner, on the basis of broad consultation, the PBC and the MOHURD, jointly with relevant departments, had set up rules for fund monitoring and financing administration of key real estate enterprises.
The meeting emphasized that market-oriented, rule-based, and transparent financing rules would help real estate enterprises to foster stable expectations for financial policies, appropriately arrange their businesses and financing activities, and enhance resilience against risks. The rules would also promote the sound development of the real estate sector in the long-run, prevent and defuse risks of real estate finance, and facilitate steady and healthy development of the real estate market in a sustainable manner.
In addition, the meeting studied measures to improve the financial policy system to support the housing rental market, in an attempt to accelerate the establishment of a housing system that lays equal emphasis on rentals and purchases.
