context: The ongoing housing market crisis is the result of a decade-long structural problem. These policy measures are more likely to be whack-a-mole solutions that alleviate short-run pain by prolonging the long-term challenge.

CBIRC (China Banking and Insurance Regulatory Commission) and local governments are responding to the housing market with policy measures, specifically

  • Liu Zhongrui 刘忠瑞 CBIRC acknowledged the delayed completion of one apartment complex in Jingdezhen, saying that CBIRC is working with relevant departments to support local governments’ work on ensuring timely delivery and safeguarding stability
  • Jingdezhen mobilised four state-owned capital platforms to help resolve the issue on 8 July
  • Chongqing municipal government summoned real estate developers who suspended their projects’ construction, asking them to resume as soon as possible
  • Changsha and Zhuzhou categorised suspended projects into different categories
    • for projects that developers cannot finish, the government will set up special teams to verify their assets and design assistance plans
    • the government has intervened in some projects whose pre-sale funds were managed solely by banks
  • Xi’an, Shantou and Cangzhou all enhanced the regulation of pre-sale funds
  • Xianyang adopted a one-on-one assistance policy, pairing government bureaus with troubled enterprises
  • Suining paired all 83 apartment compounds under construction with government leaders to fully grasp their construction status
  • Chuxiong issued 15 firm challenge-relief measures; they include a policy of putting unfinished projects on the land auction market after a grace period, allowing other companies to jointly develop the project
  • Henan province established a real estate relief fund for Zhengzhou city, helping developers through asset auctions, resource reallocation and reorganisation consultancy
  • Lixia District of Jinan city helped real estate developers gain pre-sale regulated funds to be spent on unfinished projects