(Bloomberg) -- Here are the key takeaways from a briefing in China on Thursday on the property market, by speakers including Housing Minister Ni Hong:
- China is expanding a “white list” program that allows unfinished housing projects and developers to access credit. Loans approved under this program will reach 4 trillion yuan ($561 billion) by the end of the year, almost double what they are now.
- Chinese cities will renovate 1 million more homes in run-down downtown districts known as “urban villages.” Local governments will be allowed to finance that program by issuing special bonds — through which residents can receive cash to buy new apartments.
- Ni said since the beginning of the month, he has seen a broad-based recovery in the property markets of the country’s top cities. The market nationwide is “starting to find its bottom” after slumping for three years, he added.
- The measures announced indicate Beijing is pressuring banks and local governments to provide more funding to the property market, a disappointment for economists calling for the central government and the People’s Bank of China to step in.
- Investors were largely underwhelmed by the briefing, partly due to a lack of fresh, bold steps, and the absence of a specific figure for stimulus. A gauge of developers tracked by Bloomberg had fallen 8.3% by 11:30 a.m. local time, while iron ore and steel futures were lower in the commodities market.
For more on China’s Housing Ministry Briefing, click here for our TOPLive blog.
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