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China's top real estate regulator vows to tackle property delivery risks - Xinhua

Published 12/25/2021, 09:00 AM
Updated 12/25/2021, 09:05 AM
© Reuters. FILE PHOTO: Surveillance cameras are seen near a real estate project under construction in Shenzhen, Guangdong province, China November 8, 2021. REUTERS/David Kirton

© Reuters. FILE PHOTO: Surveillance cameras are seen near a real estate project under construction in Shenzhen, Guangdong province, China November 8, 2021. REUTERS/David Kirton

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.

© Reuters. FILE PHOTO: Surveillance cameras are seen near a real estate project under construction in Shenzhen, Guangdong province, China November 8, 2021. REUTERS/David Kirton

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.

Latest comments

China is living proof the central planning not only doesn’t work, it doesn’t work because it’s immoral. Freedom means the absence of corecive influence, not the absence of responsiblity.
well said
🤣🤣🤣 not to mention man rich sure get richer in USA and west... first world country full of people in poverty. All the west does is create dog eat dog world, greed is good and corruption is ok if some lame investigation happens afterwards and there's a music video for charities and third world countries
Whereas you know because you read the finance media. You have equally no idea of what's going on, unlike those of us on the ground there. 10% of China's population running Ponzi schemes upon the other 90% who live in grinding poverty and for all the jabber jabber the regulators will do nothing because they are broken already. China has totally metastasized with the cancer of corruption.
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