North China's Tianjin lifts all restrictions on home buying to boost property sector

North China's Tianjin Municipality -- one of the four municipalities directly under the administration of China's Central Government -- has removed all remaining home-buying restrictions to better accommodate residents' diverse housing needs and boost the property sector.

A circular issued by local authorities on Wednesday outlines a series of measures designed to stimulate the property sector.

The new measures lift restrictions on the purchase and transfer of newly built commercial homes and second-hand homes, removing previous price caps on newly built commercial homes. Additionally, the existing classifications for ordinary and non-ordinary homes have been abolished.

The circular also adjusts the minimum down payment ratio requirement, for residents taking out residential mortgages in Tianjin, the minimum down-payment ratio for individual commercial housing mortgages has been lowered to 15 percent for both first-home purchases and second-home purchases.

The city has also optimized the setting of personal housing loan rates, allowing market-based interest rate mechanisms to guide banks in making orderly adjustments to existing mortgage rates.

Efforts will also be made to increase financing for real estate projects. The government is set to ramp up support for "white list" real estate projects, urging commercial banks to swiftly disburse pre-approved loans to meet the reasonable financing needs of these developments.

The "white list" is an itemized register of real estate projects or developers that have been ruled compliant with regulations and thereby eligible for financial support.

Under the "white list" mechanism launched in late January 2024, local authorities can recommend real estate projects eligible for financial support to financial institutions.

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 6 percent of the country's GDP.

To accelerate the development of a new real estate model, the circular calls for reforming the real estate development management system. This includes scientifically controlling increase in housing supply and properly managing the rhythm of commercial housing provision to achieve a market balance between supply and demand.

Furthermore, Tianjin will further optimize its housing design regulations and standards to support real estate developers in actively exploring the construction of more quality housing to continuously meet the diverse housing improvement needs of residents.

With the removal of purchase restrictions, both local and non-local residents can now purchase homes throughout Tianjin, including newly built and second-hand properties. Non-local buyers are no longer required to provide proof of tax payments or social security contributions to qualify for home purchases in the municipality.

North China's Tianjin lifts all restrictions on home buying to boost property sector

China will take more steps to further facilitate cross-border financial services in Shanghai by leveraging the municipality's role as an international financial center, according to a plan jointly issued by the central bank, the Shanghai municipal government and other financial authorities.

The plan outlines 18 key measures including improving cross-border settlement efficiency, strengthening the hedging of foreign exchange risks, and enhancing the insurance sector's services for export companies.

China will further optimize the management and operation of foreign exchange business, and encourage corporate groups to establish fund pools in Shanghai to achieve efficient onshore management and use of global funds.

The country will also support financial institutions to enhance their capacity to provide digital services and improve services for enterprises to expand abroad by leveraging technologies such as blockchain.

Efforts will be made to enhance the functionality and global coverage of the Cross-Border Interbank Payment System and encourage more banks to participate in the system, according to the plan.

The plan underscores the need to develop diversified products and services to hedge against foreign exchange risks, and to promote cross-border use of the Chinese currency renminbi.

According to the plan, China will increase insurance support for key export enterprises such as domestic commercial aircraft and new energy vehicle companies. The plan also encourages collaboration between insurance companies and reinsurance firms to establish insurance consortiums, thereby enhancing their capacity to cover special risks.

China to further facilitate cross-border financial services in Shanghai