Abstract
In this paper, the evolution of China’s housing finance refers to its history since the reform and opening-up started in 1978. We will introduce and analyze this topic in four aspects – financial institutions, financial market, financial regulation and control and financial products for real estate.
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Notes
- 1.
Baidu: Provisional Methods of Yantai Housing Savings Bank for Housing Saving and Loan.
- 2.
This functional positioning is clearly described in a statement by Wang Hongzhang, chairman of CCB, the Chinese shareholder of Bausparkasse. “On one hand, a large “sandwich class” will face “difficult and expensive housing loan” during urbanization. Tens of millions of rural people will move to cities, most of whom don’t have bank credit, so it will be hard for them to obtain mortgage loan from commercial banks, and they have no housing provident fund. Housing savings can fill that gap. On the other hand, housing savings can connect with low-income housing finance on the supply side. To be more specific, state developmental financial institutions will support the construction of low-income housing by providing construction capital. Housing savings help low- and middle-income families to make independent housing purchase plan, facilitate the payback of low-income housing investment, effectively balance housing supply and demand, and promotea benign capital circulation for the housing security system”.
- 3.
Reply of CBRC on Setting up the Housing Finance Department in China Development Bank (YJF [2014] No.498).
- 4.
The Chinese economy became overly reliant on real estate after 2003. The Blue Book of China’s Economy issued by the Chinese Academy of Social Sciences (CASS) in 2010 revealed that of the 20 industries categorized by the Shenzhen and Shanghai stock markets, 18 of them, except real estate and finance and insurance, had companies engaged in real estate business. Among them, 802 listed companies (including real estate ones) were directly involved in real estate by means of equity investment and association, accounting for 60.53% of the over 1300 A-share companies listed in Shenzhen and Shanghai. Some expert called this phenomenon the comprehensive reliance on real estate of Chinese economy. Some companies that went public before 2003 were categorized in the real estate industry because of their involvement in it. Therefore, statistics show that there were real estate IPOs in 1996 and 1997.
- 5.
Notice on Several Provisions Concerning Stock Issuance by CSRC in 1996 and Notice on Stock Issuance Work in 1997.
- 6.
The National Bureau of Statistics divides the income groups into the low-income group (including those with sustenance difficulty), lower-income group, lower-middle-income group, middle-income group, upper-middle-income group, higher-income group and high-income group.
References
Reply of CBRC on Setting up the Housing Finance Department in China Development Bank (YJF [2014] No.498).
Notice of the State Council on Several Issues Concerning Real Estate Development (GF [1992] No.61)
Provisional Methods of Yantai Housing Savings Bank for Housing Saving and Loan
Notice of CSRC on Several Provisions Concerning Stock Issuance in 1996.
Decision of the State Council on Deepening the Reform of Urban Housing System (GF [1994] No.43
Notice of the State Council on Continuing the Reform of Urban Housing System Actively and Prudently (GF [1991] No.30)
Notice of the State Council on Further Deepening the Reform of Urban Housing System and Accelerating Housing Construction (GF [1998] No.23)
Notice of the State Council on Promoting the Sustained and Healthy Development of Real Estate Market (GF [2003] No.18)
Notice on Further Intensifying Real Estate Credit Management by PBC (2003).
Notice on Intensifying Commercial Real Estate Credit Management by the PBC and CBRC (2007)
Notice on Intensifying Commercial Real Estate Credit Management (YF [2007] No.359)
Several Opinions on Promoting the Healthy Development of Real Estate Market (GBF [2008] No.131)
Guiding Opinions on Promoting the Renovation of Rundown Areas in Cities and State-owned Industrial and Mining Areas (JB [2009] No.295)
Regulations on Management of Housing Provident Fund (revised in 2002)
Baidu: Provisional Methods of Yantai Housing Savings Bank for Housing Saving and Loan
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Gao, G. (2020). Real Estate Finance in China: Evolution and Prospects. In: Housing Reform and China’s Real Estate Industry. Research Series on the Chinese Dream and China’s Development Path. Springer, Singapore. https://doi.org/10.1007/978-981-13-0965-6_3
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DOI: https://doi.org/10.1007/978-981-13-0965-6_3
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