China’s main real estate regulator has pledged to resolutely tackle the risks associated with the late delivery of residential properties by some large developers in an effort to maintain social stability, the state-run Xinhua news agency reported on Saturday. .
Wang Menghui, head of the Ministry of Housing and Urban-Rural Development, also told Xinhua that China will keep its real estate policies consistent and stable, while strengthening coordination in areas such as finance and land and market surveillance. .
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Chinese developers have suffered liquidity problems this year as Beijing stepped up its deleveraging campaign against the bloated sector, triggering defaults among heavily indebted players such as China Evergrande Group.
Although Chinese regulators have eased funding restrictions slightly to avoid a manual landing of the sector, Wang has ruled out a policy reversal. China will not use the real estate sector as a tool to stimulate the economy for short-term growth and will continue to clamp down on speculative investment, Xinhua reported, citing Wang.
Instead, China will put in place a mechanism to foster the long-term development of the real estate sector, while maintaining stable market expectations, as well as land and real estate prices.