China's Housing Market Revival: White List Expansion and Bank Lending Boost

China aims to stabilize its housing market by expanding a white list of eligible housing projects for financing, increasing bank lending to 4 trillion yuan. Urban redevelopment is also a focus, including resettlement to absorb housing inventories. Measures target restoring confidence in the property sector.

China is ramping up efforts to stabilize its housing market by expanding a 'white list' of eligible projects for enhanced financing, aiming to boost bank lending for these developments to 4 trillion yuan by the end of the year. Minister of Housing and Urban-Rural Development Ni Hong highlighted these initiatives, emphasizing the acceleration of urban redevelopments, including resettling citizens to address housing inventory excesses.

These initiatives are part of a broader strategy to resolve the crisis that has beleaguered the sector since 2021, stalling the world's second-largest economy. The measures aim to bottom out the property market, which has seen buyer confidence wane amid asset delivery delays and declining home prices. A January report from Nomura revealed that 20 million units were sold but not yet constructed.

Efforts to restore confidence include the delivery of 2.46 million new homes since May and the augmentation of approved funding for 'white list' projects. By October 16, loans for these projects increased to 2.23 trillion yuan. However, the market response was tepid, with the CSI300 real estate index shedding recent gains. While new directives focus on extending credit support, further efforts, including special bonds for local governments to buy unsold homes, underscore the government's commitment to stabilizing the market.

(With inputs from agencies.)