SHANGHAI, December 25, Reuters - China's top real estate regulator vowed to tackle the risks stemming from overdue delivery of residential properties by some top developers in a bid to maintain social stability, according to the official Xinhua News Agency on Saturday.
Wang Menghui, head of the Ministry of Housing and Urban-Rural Development, told Xinhua that China will keep its real estate policies consistent and stable while strengthening coordination in areas such as finance, land and market supervision.
The Chinese developers suffered from a lot of liquidity stress this year as Beijing increased its deleverage campaign against the bloated sector, triggering defaults at heavily-indebted players such as China Evergrande Group.
While Chinese regulators have minimally loosened funding restrictions to avoid a hand-landing of the sector, Wang ruled out policy reversal.
The property sector will not be used as a tool to stimulate the economy for short-term growth and will continue to crack down on speculative investment, according to Xinhua.
China will set up a mechanism to foster the long-term development of the real estate industry, while maintaining stability in market expectations, as well as land and property prices.
Wang said that the fundamentals of China's real estate market haven't changed with home buying demand robust from the still-rapid pace of urbanisation and the need for better living standards fuelled by the coronavirus epidemic.
On Saturday, China's central bank said it will protect the legal rights of home buyers and better satisfy their reasonable living needs, and that it will promote healthy development of the country's real estate market.