THE country’s banking and insurance regulator has issued guidelines urging banks and insurers to support the development of affordable rental housing.

The China Banking and Insurance Regulatory Commission urged commercial banks to undertake affordable rental housing projects, according to a statement published on its website Friday.

Insurers should provide long-term financing support to affordable housing projects, it said.

The move aims to increase the supply of affordable rental housing to help migrants and young people, the regulator said.

China’s housing minister pledged Thursday to keep the real estate market stable this year and ensure genuine demand for homes is met.

China will work to expand the supply of affordable rental housing as part of efforts to resolve housing difficulties, said Wang Menghui, head of the Ministry of Housing and Urban-Rural Development.

China aims to offer 2.4 million units for affordable rental housing this year, said Wang, after 942,000 units in 40 cities with high population inflows helped meet demand from 3 million people last year.

The country will also add another 100,000 public rental houses and renovate 1.2 million houses in rundown areas, said the minister.

The banking and insurance regulator also asked China Development Bank, the country’s leading policy bank, to enhance middle to long-term credit supports to affordable housing projects.

The country will maintain the continuity and stability of its housing policies and strengthen precision and coordination in policy maneuver, according to Wang.

China is still in the stage of rapid urbanization, as indicated by the increase in population and the number of families in urban areas, Wang said.

Over 11 million new jobs are created in urban areas every year, one factor that has generated rigid demand for housing in the country, according to Wang.

(SD-Agencies)