China Central Bank People’s Bank of China to Increase Funding Support for Private Property Sector, Newly Appointed PBOC Governor Pan Gongsheng Met with Representatives from Developers & Banks Including Longfor Group, CIFI Holdings, Midea Real Estate & ICBC
4th August 2023 | Hong Kong
China Central Bank People’s Bank of China (PBOC) will increase funding support for the China private property sector, with newly appointed PBOC Governor Pan Gongsheng meeting with representatives from property developers & banks including Longfor Group, CIFI Holdings, Midea Real Estate & ICBC. In July 2023, China authorities People’s Bank of China (PBOC) and National Financial Regulatory Administration (NFRA) have allowed a 1-year extension of property loans from end-2024 to support completion of property projects, and classifying commercial banks project-based special loans as non-high risk. China authorities also encouraged financial institutions to support financing property development projects. In 2022 before the United States Federal Reserve (Fed) rate increase, S&P Global Ratings estimated (In the worst-case scenario) that the total mortgage at risk amounted to 6.4% of total mortgages ($356 billion, CNY 2.4 trillion), representing around 2.5% of China total GDP ($14 trillion). More info below.
“ China Central Bank People’s Bank of China to Increase Funding Support for Private Property Sector, Newly Appointed PBOC Governor Pan Gongsheng Met with Representatives from Developers & Banks Including Longfor Group, CIFI Holdings, Midea Real Estate & ICBC “
China Authorities Allow 1-Year Extension of Property Loans from 2024 to Support Completion of Property Projects, Classifies Commercial Banks Project-Based Special Loans as Non-High Risk
14th July 2023 – China authorities People’s Bank of China (PBOC) and National Financial Regulatory Administration (NFRA) have allowed a 1-year extension of property loans from end-2024 to support completion of property projects, and classifying commercial banks project-based special loans as non-high risk. China authorities also encouraged financial institutions to support financing property development projects. In 2022 before the United States Federal Reserve (Fed) rate increase, S&P Global Ratings estimated (In the worst-case scenario) that the total mortgage at risk amounted to 6.4% of total mortgages ($356 billion, CNY 2.4 trillion), representing around 2.5% of China total GDP ($14 trillion). More info below.
China Property Watch: Worst-Case Projection of 6.4% Total Mortgage at Risks Amount to $356 Billion, Representing 2.5% of China GDP
4th August 2022 – In the worst-case scenario in the current China property mortgage crisis, S&P Global Ratings estimated that the total mortgage at risk amounted to 6.4% of total mortgages ($356 billion, CNY 2.4 trillion), representing around 2.5% of China total GDP ($14 trillion). Earlier in July 2022, property buyers & suppliers have or are starting movements to stop property payments for delayed projects, with the Chinese government, central bank & regulators stepping in with emergency meetings to ensure liquidity for banks and for banks to support financing for the completion of property projects. A week ago, it is reported China homebuyers have started a movement to stop paying monthly mortgages (housing loans) for delayed projects, with China property stocks & bonds prices declining. China largest banks including Agricultural Bank of China (ABC) and China Construction Bank & Industrial Bank (ICBC) have responded that the associated risks are controllable, and accounting for 0.012% of total mortgages (ABC, Agricultural Bank of China). Yicai: “Buyers in around 150 housing projects across 20 provincial-level regions have banded together to demand that developers restart building and that the houses are delivered within a reasonable period of time otherwise they will stop repaying their bank loans, according to the latest data. Most of these unfinished projects are in smaller second, third and fourth-tier cities were there is a glut of properties on the market.”
China’s Property Bond Crash Spreads as Homebuyers Revolt
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