Nov 8 (Reuters) – Chinese authorities have asked Ping An Insurance Group to acquire a controlling stake in Country Garden (2007.HK), the country’s largest private real estate developer, sources said.
The rescue of the Country Garden by Ping An would be one of the most significant interventions yet by authorities to support the financially stressed and debt-laden property sector, which accounts for a quarter of China’s economic activity and has raised fears of a wider financial crisis.
Below is a timeline of the main measures taken by the authorities this year.
November 8 – Central Bank Governor Pan Gongsheng said he would encourage financial institutions to keep bond and credit financing channels open to help address the weakness of the real estate sector.
November 7 – Shenzhen State Asset Regulatory Authority and state-owned Shenzhen Metro pledged support for China Vanke (000002.SZ) as Shenzhen Metro said it had prepared more than 10 billion yuan ($1.4 billion) worth of “market instruments” to help… cash flow. . Both are major contributors to the developer.
October 31 – China pledged to meet all reasonable financing needs of developers, regardless of whether they are private or state-owned companies. The statement came at the Central Financial Action Conference, a political meeting held twice every decade.
September 14 – China’s central bank said it will reduce the amount of cash banks must hold in reserves for the second time this year to boost liquidity.
September 1 – Sources said China was ready to take further action. They said the proposed measures include lifting restrictions on home purchases in non-core areas in major cities such as Beijing, Shanghai and Shenzhen and gradually removing price caps for new homes.
August 31 – China’s central bank and financial regulator eased some borrowing rules for homebuyers, including lowering current first-home buyer mortgage rates and down payment ratios in some cities.
August 30 – September. 1 – Major Chinese cities say they will allow people to get preferential loans to buy a first home regardless of their credit history.
August 25 – Local governments are allowed to scrap the mortgage rule so that people who bought a home and then sold it after paying off their mortgage can get preferential loans as first-time homebuyers, state media Xinhua reported.
August 25 – The Chinese Cabinet approved guidelines for planning and construction of affordable housing.
August 21 – China cuts its benchmark one-year lending rate.
July 24 – China’s top leaders held a Politburo meeting and deleted the phrase “housing for living, not for speculation” in the official reading.
July 21 – The Cabinet approved guidelines on transforming “urban villages” or backward areas in major cities, which will help support real estate investment.
July 10 – China’s central bank extended until the end of 2024 some policies in the November rescue package to support the real estate sector.
June 20 – China’s central bank lowers key lending standards, or key interest rates on loans, for the first time in 10 months.
(Reporting by Liangping Zhao and Ryan Wu in Beijing and Claire Jim in Hong Kong; Preparing by Mohammed for the Arabic Bulletin) Editing by Anne-Marie Rountree and Edwina Gibbs
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