China pushes low-rent apartments with looser lending cap

Lack of affordable housing adds to youth frustration over economy

20210208N Beijing construction

Workers build a residential property in Beijing. © Reuters

IORI KAWATE, Nikkei staff writer

BEIJING -- The Chinese government will encourage property developers to build more affordable rental apartments by loosening rules on borrowing, aiming to prop up a condominium market sagging under restrictions.

Funds that developers borrow from banks to construct affordable housing will no longer be subject to a cap on real estate loans, China's central bank and banking regulator announced on Tuesday.

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