What’s new: China’s top financial regulators called on financial institutions to support the stable development of the property market while pledging consistency in industry policies, as concerns around the country’s real estate sector deepen.
The People’s Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission convened a meeting with officials from the Ministry of Housing and Urban-Rural Development, the China Securities Regulatory Commission, and 24 major banks, to discuss financial policies for the property sector.
Chaired by PBOC governor Yi Gang, the meeting said financial institutions and local governments should make joint efforts to ensure the stable and healthy growth of the property market and protect consumers’ interests.
Regulators also reaffirmed their commitment to maintain prudence and consistency in policies managing the property industry to ensure market stability and prevent speculation.
The context: The meeting came as China’s property market has been rattled by growing concerns that fallout from China Evergrande Group’s debt crisis will destabilize an industry already struggling with tight government control.
China’s housing market has suffered a deepening slowdown with declining home sales and poor land auctions as regulators intensified restrictions on developers’ financing activities. The escalating crisis of China Evergrande, one of the country’s largest developers, further hurt investors’ confidence and increased financial stress on the industry.
The central bank has injected reserves aggressively into the financial system for several days to ensure sufficient liquidity and restore market confidence.
Contact reporter Han Wei (weihan@caixin.com)
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