China will enhance the lending capacity of financial intuitions for housing lease loans, and broaden bond financing channels for rental housing firms, according to a draft for solicitation of comments issued by the central bank and China Banking and Insurance Regulatory Commission (CBIRC).
China will also support the issuance of operating loans for housing leasing, and strengthen credit support for the development and construction of rental housing. Firms with continuous and stable cash flow will be allowed to launch innovative housing rental guarantee covered bonds, the draft said. In January, state media reported that Chinese authorities will in the near-term issue further policies to support the rental housing market, which will include a 100 billion yuan($14.4 billion) plan to support rental housing loans. Chinese banks have been gearing up to enhance credit support to prop up the economy after harsh COVID measures and a crisis in the property sector dragged China's growth in 2022 to one of its worst rates in nearly half a century. ($1 = 6.9420 Chinese yuan renminbi) (Reporting by Ethan Wang, Liangping Gao and Ryan Woo, Editing by Raissa Kasolowsky, Kirsten Donovan)
