Joint Ownership Housing
Beijing on September 20 unveiled a scheme to introduce homes with property rights to be shared by the government and buyers.
According to a document issued by the city’s housing authorities, individual buyers will be able to buy a share in such homes and still have the full right of use.
The policy has several restrictions. Buyers and their families cannot already own homes in their name. They should have no records of home transfers. Single people making purchases must be at least 30 years old. And a family can only apply for one home. The buyers enjoy equal rights in household registration and children’s schooling as do other home owners.
“The new model lowers the threshold for house ownership, makes housing more affordable for families and can cut government expenditure,” said Liu Hongyu, a real estate researcher at Tsinghua University.
New housing policies have also been piloted in other cities to stabilize the property market in accordance with instructions by central authorities that “houses are built to be lived in, not for speculation.”
S&P said on September 21 that it had lowered China’s long-term sovereign credit rating to A+ from AA- because a “prolonged period of strong credit growth has increased its economic and financial risks.”
Calling the reasoning a “cliché,” the MOF said it was a pity that S&P had focused on credit growth and debt, but ignored China’s distinctive financing structure, the wealth-creating effect of government spending and its support for growth, as well as the country’s sound economic fundamentals and development potential.
“The downgrade is a result of international rating agencies’ long-standing mode of thinking and a misreading of the Chinese economy based on developed countries’ experiences,” read the MOF statement.