A Chinese city rolled out a series of easing measures to boost liquidity at property developers, becoming the first major local government to address a cash crunch engulfing the real-estate industry.
Chengdu, the capital of the southwestern province of Sichuan with a population of about 21 million, is to accelerate approvals for home sales and property loans, as well as ease restrictions on using proceeds from pre-sales, a statement by the local housing authority late on Wednesday said.
“Chengdu is the first city authority to call for faster property-related loans in a clear official statement,” said Yan Yuejin (嚴躍進), research director at Shanghai-based E-house China Research and Development Institute (易居房地產研究院). “We may see other initiatives to press banks on faster mortgages soon.”
The move to boost liquidity in the beleaguered building sector comes as China’s home slump deepens, adding pressure on authorities to stabilize an industry that is estimated to account for almost one-quarter of economic output.
Some cities last week relaxed rules for land sales — a key revenue source for municipalities — after cash-strapped developers became reluctant to bid.
China’s State Council is calling on local governments to sell more special bonds this year to boost investment amid a slowdown in the economy.
Regulators are fine-tuning their long-running crackdown on the property sector after a credit crunch at China Evergrande Group (恆大集團) and other junk-rated developers began spreading to higher-rated peers.
In late September, the central bank urged financial institutions to help local governments stabilize the rapidly cooling housing market and ease mortgages for some homebuyers. Official media reported in recent weeks that faster mortgages are already on the way.
Chinese Premier Li Keqiang (李克強) chaired a meeting of the State Council on Wednesday, urging local governments to execute more public works projects at the beginning of next year, Xinhua news agency reported.
Regional governments should step up project preparation, facilitate the launch of works that are mature and make reasonable requests for special bond quotas next year, Xinhua said.
JPMorgan Chase & Co chief executive officer Jamie Dimon on Tuesday quipped that his company is likely to outlast the Chinese Communist Party (CCP), while reiterating the bank’s commitment to the country in wide-ranging comments that also touched on Taiwan, free speech and former US president Donald Trump. “We hope to be there [in China] for a long time,” Dimon told a panel discussion at the Boston College Chief Executives Club. Relaying a “joke” he made during a recent visit to Hong Kong, he said “The communist party is celebrating its 100th year. So is JPMorgan. And I’ll make you a
The Kaohsiung City Government yesterday said it would impose a property hoarding tax as it is seeking to contain speculation in the real-estate market, calling recent price increases “abnormal.” The announcement came in support of the Ministry of Finance’s call for local governments to levy a high tax rate on people with more than one property. Ministry officials on Tuesday discussed strategies to rein in speculation with the nation’s six special municipalities, as well as the Hsinchu city and county governments. About 84,000 out of 1.06 million housing units in Kaohsiung are not residential property, the city government said in a
BOOST EXPECTED: Higher market prices would offset effects of the industry’s transition to more climate-friendly production methods, a company official said China Steel Corp (CSC, 中鋼) expects steel demand to increase on the back of governments around the world subsidizing infrastructure construction amid a stabilizing COVID-19 pandemic, CSC chairman Wong Chao-tung (翁朝棟) told an investors’ meeting yesterday. “After getting through the hard times, I foresee at least one year, very possibly two years, of strong steel market,” Wong said. Calling a dip in steel prices a “short respite for the market,” Wong said that it would likely bounce back early next year on the back of mild winter temperatures around the world allowing construction activity. Despite COVID-19 spikes in some regions and increased
The resilience of the semiconductor supply chain was at the top of the agenda yesterday at the second Economic Prosperity Partnership Dialogue between representatives from Taiwan and the US. Other topics discussed included public health, green energy, the digital economy, 5G network security, and science and technology, the Ministry of Economic Affairs said. Minister of Economic Affairs Wang Mei-hua (王美花) and Minister of Science and Technology Wu Tsung-tsong (吳政忠) represented Taiwan via videoconference from Taipei, while US Undersecretary of State for Economic Growth, Energy and the Environment Jose Fernandez spoke from Washington. The dialogue was conducted under the auspices of the American Institute