Joint Own­er­ship Hous­ing

Beijing Review - - This Week Economy -

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.

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