He Lifeng Urges 'White List' Lending to Stabilize China’s Property Market and Economy

White List Lending as a Strategy for Economic Recovery

He Lifeng, China’s vice-premier, recently advocated for increased loans and home delivery guarantees for 'white list' real estate projects. This initiative aims to support a property market that significantly impacts China’s economic recovery.

The Current State of China's Property Market

The property market serves as a critical indicator of the country's macroeconomy. Improved management is essential for sustaining economic recovery and protecting public interests. Lifeng stressed the need for efficient real estate financing coordination to expedite credit approvals.

Government Measures for Stabilization

In January, a 'project white list' mechanism was introduced, with local governments recommending eligible residential projects for financial backing. This strategy is integral to addressing the sector’s debt crisis, as real estate contributes to a quarter of China's GDP.

Expanding Support for Real Estate Projects

Lifeng proposed broadening the white list scope to include all eligible projects under construction and those sold. He emphasized promoting existing commercial housing for affordable housing use, leveraging supportive policies like the affordable housing relending scheme.

Government Initiatives and Future Outlook

Following Lifeng's comments, the Ministry of Finance announced new actions to bolster the property sector, hinting at increased government borrowing. This ongoing support reflects the government's commitment to revitalizing the sluggish economy.

Conclusion and Key Takeaways

China's property market showed signs of recovery during recent holidays, as interest picked up with newly introduced measures aimed at stimulating consumption and property sales.