The Ministry of Housing, Qin Hong: housing enterprises are not short of money

By | May 17, 2013

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“At present, the funding status of the real estate development enterprises is almost the best within in the recent years.” Policy Research Center of the Ministry of Housing, Renqin Hong said yesterday at the 2013 SAIF Sino-US Real Estate Finance Forum “, she said that “currently, the real estate enterprises are having good external environment, in particular the ample monetary supply is very beneficial to the development of the real estate market. In future, more attention shall be paid to the direct financing in the housing market”.

In April, the M2 growth rate far exceeded the 13% growth target set at the beginning of the year. The recently published data by the central bank showed that in the end of April, the M2 balance amounted 103.26 trillion yuan (US$ 16.52 trillion), an increase of 16.1%, 0.4 and 3.3 percentage points higher than previous month and the same period last year respectively.

“In term of investment and financing amounts, the two numbers are currently at the highest level in the past 10 years.” Qin Hong said that the real estate business are not short of money with the ability to get to the high-priced land; the current corporate capital position and the funds in place status are healthy with relatively high growth rate.

Although liquidity becomes more relaxed, Qin Hong yesterday stressed that “there is ample social mobility this year, but in the future, in addition to loans, housing enterprises must pay more attention to direct financing which will certainly be an important tool to help the funding of the real estate enterprises.”

Source: 上海证券报

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