ING report on moves to address this reported on last week:
ING:
- a number of residential property construction projects reported in the media earlier as being involved at risk of suspension of work have either returned to normal construction or have resumed construction work.
- Though the number of projects quoted that have resumed works is below 5, there is a high chance that the Ministry of Housing will partner with the PBoC to establish a fund (mostly likely from banks) to offer loans to construction projects for the resumption of construction so that mortgage payments will return to normal.
- The main objective of the central government is now to avoid financial systemic risks from residential property companies to the financial system.
A band-aid solution, but it might just work out.
