China's Central Bank Urges Support for Affordable Housing in Shanghai

The Shanghai branch of China's central bank has asked banks and financial bodies to spur innovation in products and services to support affordable housing while urging prudence on developers. China's politburo, a top-decision making body, said it would support the private housing market to better meet the reasonable needs of home buyers, as regulators make financing changes to ease liquidity strains in property markets. Banks and developers attended a meeting on Friday in the key business hub held jointly by the People's Bank of China branch, the office of the China Banking and Insurance Regulatory Commission and local housing and financial regulatory. "The increasing supply of affordable housing is a key approach to meet the living needs for citizens new to Shanghai and the younger generation, and an effective measure to help materialise common prosperity," the statement said. At the meeting, banks signed strategic pacts with the local government-backed Shanghai Land Group, Shanghai CIFI Holdings Group, Hong Kong-listed Shui On Land Ltd, and Shanghai-based Dahua Group to support affordable housing, the statement added. Such signatories are the Industrial and Commercial Bank of China , China Construction Bank , Bank of Communications , Shanghai Pudong Development Bank, Bank of Shanghai , and Shanghai Rural Commercial Bank.