China’s biggest bank in terms of assets has agreed to provide over 650 billion yuan in lending to the country’s leading real estate enterprises as part of efforts to bolster the recently beleaguered property market.
On 24 November the Industrial and Commercial Bank of China (ICBC) executed an agreement to provide a total quota of 655 billion yuan in intentional financing to 12 of China’s nationwide real estate enterprises, in order to “gather together the combined forces of banks and enterprises and jointly expedite the stable and healthy development of the real estate market.”
These enterprises include Vanke Group, Gemdale Group, Greentown China, Longfor Group, Country Garden Group, Midea Real Estate and Radiance Group.
According to the cooperative agreement, ICBC will “make full use of its advantages in areas including funds, channels and services, to engage in comprehensive cooperation with related real estate enterprise groups for operations including real estate development loans, personal home mortgages, real estate project takeover financing, rental home financing, bond underwriting and investment, to satisfy the rational financing demand of enterprises.”
The Agreement also stated that ICBC and signatory enterprises will “uphold the position that homes are for occupation, not speculation” and expedite the healthy development of the real estate market, in accordance with the arrangements of the Chinese Communist Party Central Committee and the State Council.