China's property sector set to receive support with 'Whitelist' financing program
Posted on February 12, 2024 |
Beijing's new "whitelist" financing program will provide funding for many real estate projects in China to tackle a worsening liquidity crisis.
Over 3,000 projects in 170 cities across China's provinces have been proposed, with 17.86 billion yuan ($2.48 billion) in loans set aside for 83 projects by the end of January.
Despite efforts like lower mortgage rates and eased financing rules, China's real estate market remains in a difficult situation.
Property investment fell by 9.6% in 2023, while new construction starts fell by 20.4%, and home sales by value declined by 6.0%.
China's 100 biggest developers saw a significant drop in new-home sales in January, with sales down 34% from the previous year, marking the worst month since at least July 2020.
The whitelist program includes projects from private builders and companies with various ownership structures, including financially troubled Country Garden Holdings, with over 30 projects included.