China to set up 300-bln-yuan relending facility for government-subsidized housing

China's central bank announced on Friday that it will establish a 300-billion-yuan (about 42.25 billion U.S. dollars) relending facility to support the government-subsidized housing projects as part of the country's efforts to boost the property market.

Local state-owned enterprises are encouraged to use the funds to buy reasonably-priced commercial homes that have completed construction, and these homes will then be used to provide affordable housing, Tao Ling, deputy governor of the People's Bank of China (PBOC), the central bank, said at a press conference.

Tao also said that the minimum down payment ratios for individuals' commercial housing mortgages will be lowered to 15 percent for first-home purchases and 25 percent for second-home purchases, and that the minimum level of commercial mortgage rates for first and second homes will be canceled across the country.

"After the above-mentioned down payment ratio and mortgage rate policies are adjusted, local governments can implement policies based on the regions' own conditions and independently determine the minimum down payment ratio and the mortgage floor rate for their residents' first and second homes, or no longer set mortgage floor rate," she said.

State-owned enterprises in Zhengzhou City, central China's Henan Province, Nanjing City, east China's Jiangsu Province and Zhuhai City, south China's Guangzhou Province have already bought some homes through direct acquisition, trade-ins and other modes.

In an interview with the China Media Group (CMG), Dong Ximiao, chief researcher with Merchants Union Consumer Finance Company Limited, said the 300-billion-yuan relending facility will offer increased support to local governments during the home-buying process.

"On the one hand, it is conducive to accelerating the de-stocking of commercial housing market. At the same time, tap the potential of existing houses will help alleviate the structural contradiction in the current real estate market, where there is a large supply of commercial housing and a small supply of affordable housing, thus better solving the housing difficulties of the working class," said Dong.

Dong said that the relending facility will also help ensure the delivery of housing projects and boost market confidence.

"After property developers sell commercial housing, they can use the funds they receive to work on projects which are still under construction and fulfill their obligations to ensure the delivery of housing projects. The enhanced ability of property developers to get funds will also help more projects meet the conditions of the special loans that ensure the delivery of housing projects and the real estate financing coordination mechanism, or the 'white list' mechanism, which was introduced previously, so as to form a virtuous circle and boost market confidence," said Dong.

Under the "white list" mechanism launched in late January, local authorities are recommending real estate projects eligible for financial support to financial institutions. They are also coordinating with financial institutions to fulfill the requirements of these projects. The mechanism is part of China's efforts to stabilize the sector weighed by debt problems and boost confidence in an industry that accounts for nearly six percent of the country's GDP, according to the National Bureau of Statistics.

China to set up 300-bln-yuan relending facility for government-subsidized housing

The remarks by the Taiwan region's leader Lai Ching-te on Thursday are a blatant attempt to separate Taiwan from China, but such efforts are doomed to fail as the overwhelming majority of countries in the world fully recognize the one-China principle, said Victor Gao, chair professor of Soochow University in east China's Suzhou City.

Chinese Foreign Ministry spokeswoman Mao Ning said at a press conference in Beijing on Thursday that Lai's speech deliberately sought to sever the historical ties between the two sides of the Taiwan Strait, once again exposing his stubborn "Taiwan independence" separatist stance and his ill intention to heighten cross-Strait tensions for selfish political interests.

In a phone interview with the China Global Television Network (CGTN) on the same day, Gao said the spokeswoman's response was very solemnly made and refuted the absurd narratives preached by Lai.

Gao cited the one-China principle, which stipulates there is only one China in the world, that Taiwan is part of China, and that the government of the People's Republic of China is the sole legal government representing the whole of China, and noted this observed by the United Nations and by the majority of countries around the world.

"In essence, what Lai Ching-te has been doing is to advocate two 'countries' on both sides of the Taiwan Strait. He claimed that the People's Republic of China has never subjugated Taiwan to its rule in complete denial of the fact that the overwhelming majority of the countries in the world, the United Nations, and all the international organizations fully recognize the one-China policy. This is a blatant push for the real separatism of Taiwan," said Gao.

He warned that Lai's dangerous remarks could bring catastrophic consequences to cross-Strait relations.

"More and more people in Taiwan now realize the risks created by positions that are preached by Lai Ching-te, and they want to call on this local leader in Taiwan to really come back to his senses. There is only one China after all. While you are in Taiwan, you can call yourself 'Taiwanese', but a 'Taiwanese' is also a Chinese," said the expert.

Gao further stressed that more than 180 out of the 193 U.N. member states recognize the one-China principle, and urged some hostile forces in the United States to stop abetting Lai's separatist stance.

"The government of the United States still persists in this one-China policy, even though they are trying to hollow out the one-China policy. In a sense, I think people like Lai Ching-te, who are becoming die-hard separatists [and] try to split China, have been aided and abetted by some hostile forces in the United States. And I hope the majority of the countries in the world or the great majority of mankind will realize that, and the one-China policy will prevail," said Gao.

Lai Ching-te's remarks blatant push for Taiwan separatism: expert

Lai Ching-te's remarks blatant push for Taiwan separatism: expert